Answer

1. F

   Facts

   Agreeing means CPC adds the amount and issues an intimation with tax, interest and a demand. Interest under Sec 234B keeps running at 1% a month until the tax is assessed. You can pay as self-assessment tax now or pay the demand once the intimation comes.

2. P

   Provisions and law

   • Sec 143(1)(a) (now Sec 270(2))CPC can adjust the return for listed reasons, but must first tell you and consider a reply given within 30 days
   • Sec 234B (now Sec 424)Interest at 1% a month where advance tax paid is less than 90% of the tax assessed
   • Sec 234C (now Sec 425)Interest for paying advance tax instalments late or short
   • Sec 156 (now Sec 289)A notice of demand is served for any tax, interest or penalty payable
3. A

   Analysis

   Take an example: ₹50,000 of unreported interest for a person in the 20% slab under the old regime is ₹10,400 of tax with cess. Sec 234B interest at 1% a month runs from 1 April of the assessment year, so a few months add a few hundred rupees, and Sec 234C may add a little more. If you pay before the intimation, use e-Pay Tax with minor head 300 (self-assessment tax) and the right assessment year so CPC can match it. Otherwise pay the demand under Sec 156 (now Sec 289) shown in the intimation.

4. C

   Conclusion

   1. 1Choose Agree for the variance on e-Proceedings.
   2. 2Work out tax plus interest, or wait for the intimation figure.
   3. 3Pay through e-Pay Tax with the correct assessment year and minor head.
   4. 4Check that the intimation shows the payment and nil demand.

Paying under the wrong assessment year or minor head leaves the demand open and needs a correction request.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.