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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.
ITR
Paying tax on income you accept during the proceeding
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 140A, Income-tax Act 1961 (now Sec 266); Sec 144, Income-tax Act 1961 (now Sec 271)
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.
Close
- Compute tax and interest on the accepted income.
- Pay it through e-Pay Tax for the right assessment year.
- Attach the challan to your reply.
- Keep the dispute limited to other items.
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