The self-assessment tax computed u/s 140A by Gaurav is ₹65,000 which includes ₹30,000 as interest for late filing of return. The assessee deposited ₹35,000 as self-assessment tax. In this case :

CS Executive · Tax Laws and Practice · PYQS · June 2021
The self-assessment tax computed u/s 140A by Gaurav is ₹65,000 which includes ₹30,000 as interest for late filing of return. The assessee deposited ₹35,000 as self-assessment tax. In this case :
(A) ₹35,000 shall be adjusted towards tax due
(B) ₹30,000 shall be adjusted towards interest due and balance ₹5,000 shall be adjusted towards tax due
(C) ₹35,000 shall be adjusted in the proportion towards tax and interest
(D) No adjustment of tax is possible

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax Act, 1961

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