Answer

1. F

   Facts

   You can pay self-assessment tax on income you accept and mention it in your reply. This reduces interest and shows good faith, though it does not stop the assessment.

2. P

   Provisions and law

   • Sec 140A, Income-tax Act 1961 (now Sec 266)Tax due on income is paid as self-assessment tax with interest.
   • Sec 144, Income-tax Act 1961 (now Sec 271)If you do not file a return or do not comply with notices under Sec 142(1) or 143(2), the officer can assess to the best of judgment after a show-cause notice giving you a date to be heard.
3. A

   Analysis

   If you missed ₹50,000 of FD interest, pay the tax and interest on it and attach the challan. Say clearly in the reply that this income is offered and taxed. It narrows the dispute to the items you contest and can help when penalty is considered.

4. C

   Conclusion

   1. 1Compute tax and interest on the accepted income.
   2. 2Pay it through e-Pay Tax for the right assessment year.
   3. 3Attach the challan to your reply.
   4. 4Keep the dispute limited to other items.

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