CA Deepraj Tomar Even I was shocked to get an Interest liability of more than 20000 from my CA. Whether to delay filing my return and piling on the interest or pay it now. Now i am caught in a bind. The following procedure can be followed for the computation of self assessment tax: First calculate taxable amount payable on the individual’s total income with the help of the income tax slabs available online. We have gone through enough so please do not make our lives more difficult by making us pay interest on SA amount. When the Tax Return filing date was extended till 31 December there was no intimation to public either on TV or in newspapers about payment of SA tax by 31July 2020. If you complete a self assessment tax return, you should include your non-ISA savings interest on the form as usual. Will my interest on my ISAs be counted as part of the new allowance and will I need to list any of my savings on my tax return? Self-assessment tax Filling in a tax return: five common mistakes As the self-assessment tax deadline looms, alarm bells ring: leaving it to the last minute can lead to carelessness and errors I would earnestly request the honorable Prime Minister and Finance Minister to waive the interest under section 234A for senior citizens and to make an announcement at the earliest on all TV channels and newspapers. HMRC will simply work out if your interest is less than your allowance and, if so, won't tax it. Thanks for any help. Its serious burden on them to pay SA Tax on or before 31.07.2020 to avoid 234A interest. So, I am made to pay interest/ penalty under 234 A, B and C. Do I need to declare the interest on my savings in my tax return? In this case, the whole of the self-assessment tax shall be payable by the due dates specified in the Income-tax Act, 1961 (IT Act) and delayed payment would attract interest under section 234A of the IT Act”. Understanding what your allowable expenses are, as HMRC calls them, can really help your business. In other words, the taxpayer is liable to pay simple interest at 1% per month or part of a month for default in payment of advance tax. How does CBDT expect senior citizens to pay SA tax before 31July when the banks could give interest certificates only in August and form 16A in Sept. Form 26AS was updated in September. Interest is levied at one per cent per month or part of a month on a simple interest basis. I hope the Govt will look into for waival of Interest amount on IT at this pandemic situation for Pensioner like me. Senior citizens are only required to pay tax in advance if they are having professional or business income. Rate of interest. 21 December 2017 at 10:52PM edited 30 November -1 at 12:00AM in Cutting Tax. First the government and our honorable prime minister asks all citizens and more so the senior citizens to avoid going out of the house to avoid contacting the corona virus and then expects us to pay SA tax before 31July failing which the CBDT slaps a penalty of 1% of the tax due. Ordinarily, whenever due date for filing return is extended, the interest payable under section 234A for failure to file return on time also gets consequentially deferred to the extended due date. In order to submit a comment to this post, please write this code along with your comment: 6baf97130c2d5960755b99846e3b7c60. Importantly, the interest you get on your ISAs doesn't count towards this allowance as they are already free of tax. b) The absence of details incapacitates the honest taxpayers in determining the SA Tax as it requires the taxpayer to collate relevant information from various sources. They are required to pay full amount of their liability by way of SA Tax after gathering relevant information and making tax computation. For this, you need to … If you defer the payment, interest will still run on the amounts due to HMRC. Non-Corporate Taxpayer: 1% interest rate per month for a period of 3 months is computed for advance tax less than 30% of the amount on or before September 15. The details like form 16,16A has not been provided by the govt departments by 31-7-2019 to the tax payers and they are punished with fine for the inefficiency of the govt. Any update or representation given so far with the finance ministry on the same.. Kindly take it to tax authorities on behalf of similar tax payers. “Provided further that the extension of the date as referred to in sub-clause (b) of clause (i) of the first proviso shall not apply to Explanation 1 to section 234A of the Income-tax Act, 1961 in cases where the amount of tax on the total income as reduced by the clauses (i) to (vi) of sub-section (1) of the said section exceeds one lakh rupees”. Sir you are well aware about the difficulties faced by all citizens and more so by senior citizens due to pandemic. I feel bad at the attitude Govt takes on honest tax payers while crores of rupees are not being payed by the big business houses. I am a senior citizen and I have been filing my tax returns every year before the due date. Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. Interest is levied at one per cent per month or part of a month on simple interest basis. For FY 2019-20, the due date for filing ITR has been extended to November 30, 2020. The current pandemic and impending global recession too calls for removal/reduction of burden from high rate of 1% u/s 234A. Carl Lamb of Almary Green responds to our reader. Got a Self Assessment tax return to fill in but not sure what your business can claim back? Further, several states like (TN,WB, MH) have extended lockdown till 31st July, 2020 because of outburst of COVID 19 pandemic. prevailing in 1990s to 6% p.a. The press release issued thereafter clarified above that there will be no extension of date for the payment of self-assessment tax for the taxpayers having self-assessment tax liability exceeding Rs. This means that information you provide to the ATO is initially accepted as being true and correct when you lodge your tax return and other forms on which you disclose your tax liability. I have looked everywhere and even phoning the HMRC drew a blank as they had no tecnical advisers available. Lockdown, and other factors Bnaks could not give Form-16 before August’20. Due to Pandemic. There is still no need to include ISA interest, income or gains in your tax return. Of all the Self Assessment expenses you should be claiming on your annual tax return, simplified expenses is the easiest. Self-assessment and the taxpayer. Whether there is any likelihood of any notification for withdrawal of interest under 234A for delay in filing of return even if all due tax has been paid in Aug 2020. You should declare any interest of over £1. Contact Alistair Bambridge, alistair@bambridgeaccountants.com, 020 3797 1432. In this guide you’ll find out if and when you need to fill one in, when you need to register, what sections you’ll need to fill out, what expenses you can claim and how to pay your final tax bill. As a senior citizen, I sincerely request CBDT to review this issue and provide relief as soon as possible as at present Senior Citizens are badliy hit by the Corona and they are not able to go out of home even for treatment. In this case, the whole of the self-assessment tax shall be payable by the due dates specified in the Income-tax Act, 1961 (IT Act) and delayed payment would attract interest under … Thanks. So for example, if you earn £14,000 a year from a part-time job and £5,000 interest from savings, this is how you would be taxed in 2020-21: 0% on the first £12,500 income from your job = £0 20% tax on the remaining £1,500 from your wages (£14,000 less the £12,500 personal income tax allowance) = £300 I go to my tax auditor once a year to assess my tax liability and pay the self assessment tax and file the returns before 31st July of every year and I get appreciation mail also from IT every year for my contribution to nation building. Section 234A Interest for AY 2020-21: Taxpayer’s hopes are normal as usual but results are opposite as expected. (with effect from 1-4-2009) (earlier it was Rs.5000/-) So you may deposit of the tax amount only as self assessment tax … This is absurd. Thanks, As a senior citizen, I sincerely request CBDT to review this issue and provide relief as soon as possible, Your email address will not be published. Rising coronavirus rates mean Norfolk 'highly likely' to go into Tier 3 or 4, Droves of pubs and restaurants shutting down until tier two is over, Warning against Christmas visits to north Norfolk as virus cases surge, William and Kate 'inadvertently' breach rule of six at Sandringham event, Coastal hotel shuts following Tier 4 annoucement, Two people and a dog killed in crash on the Acle Straight, First glimpse of new Alan Partridge series revealed, Fish and chip shop at pub closes after positive coronavirus case. In case he misses out on a portion of the income when he is making the final payment, it is possible that the TDS hasn’t been deducted or the payment has been done at a lower rate. Interest u/s 234A is most unjustified, more specially for the Senior citizens. Greetings, Copyright © TaxGuru. I normally don't include my ISA interest in my tax return and up to now any tax due on my building society savings has been deducted before I get the interest, although the amounts did need to be included on my tax return. I understand that the building society is now paying me the interest without deducting tax and that there's a new allowance that will mean I don't pay tax on the interest at all. As senior citizens are exempted from payment of advance tax it was assumed that section 234A too would be extended till 31st December. This newspaper has been a central part of community life for many years. 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