Tax payment allocation: instalment payments should be applied first to wealth and gift tax before income tax arrears. When an assessee has arrears of income-tax, wealth-tax and gift-tax and pays in instalments, payments shall, absent any specific request by the assessee, be first adjusted against wealth-tax and gift-tax dues and only thereafter against income-tax arrears, and the instruction must be communicated to ITOs on collection duty.
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Tax payment allocation: instalment payments should be applied first to wealth and gift tax before income tax arrears.
When an assessee has arrears of income-tax, wealth-tax and gift-tax and pays in instalments, payments shall, absent any specific request by the assessee, be first adjusted against wealth-tax and gift-tax dues and only thereafter against income-tax arrears, and the instruction must be communicated to ITOs on collection duty.
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