Demand of less than Rs 100 under Section 143(1) can be adjusted against future tax refunds; here is how

Updated: October 27, 2017 11:24:22 AM

As per the notification issued by the Government of India, it has been clarified that a demand of less than Rs 100 will not be enforced on the assessee but is liable for adjustment against future refunds.

future tax refunds, tax refunds, tax department, income tax, ITR, tax liability, PGBPDemand of Rs 10 and non-payment of such amount will not initiate any scrutiny process. (Image: PTI)

Shanmuga Prasad

I have received an intimation under Section 143(1) with a demand identification number and the net amount payable is Rs 10. The demand is because of 234C interest. I am not able to figure out how to pay online. Should I go to any income tax office and give them Rs 10 in cash? Does this mean that with Rs 10 demand, the tax department will initiate scrutiny against me and harass me and my family?

– Shyamjit Nakra
As per the notification issued by the Government of India, it has been clarified that a demand of less than Rs 100 will not be enforced on the assessee but is liable for adjustment against future refunds. Hence, the demand of Rs 10 is not required to be paid. Also, demand of Rs 10 and non-payment of such amount will not initiate any scrutiny process.

My son from USA sends me Rs 50,000 every month to my saving banks account for my expenses. I am a senior citizen having no other income. Is this amount taxable and do I have to file ITR. Please clarify?

—C K Umesh
Transfer of Rs 50,000 monthly to your savings bank account in India by your son will not be taxable in your hands. However, the interest received from the bank on the amount accumulated in the account will be taxable in your hands if the interest income exceeds the basic exemption limit as per the income tax laws.

What is the limit on intra-day trading per day or per annum? What is the tax liability on this? Does income from intra-day have to be shown in I-T filing? As the broker charges us for the trading, can those charges be treated/assumed as tax paid?
—Jitender Verma
As per the Income Tax Act, there is no such limit for intra-day trade transactions for attracting income tax provisions. The intra-day trading is taxable as speculative business income under the head ‘Profits and Gains of Business or Profession (PGBP)’ and will be taxed at applicable tax rate. The cost of brokerage can be treated as an expense while computing the profits and the balance should be disclosed in the income tax return under PGBP.

The writer is tax director, People Advisory Services, EY India. Send your queries to fepersonalfinance@expressindia.com

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