Adjustment of FBT to Excess tax deposited

[BHASKER MURALI]

Hi, I have a small doubt that we paid excess amount as self assessment tax, so please advoice that can we adjusted to FBT for the same financial year please advoice.We have a liability in FBT

[BHASKER MURALI]

Dear sir, please advoice whether we can set off the self assessment income tax to FBT? we appreciate your earlier reply

[TUSHAR SHARMA]

No. Excess Self Assessment Tax can not be adjusted against FBT payable.

[DEV KUMAR KOTHARI]

Section 115 WL is about application of other provisions in relation to FBT. Section 237 (claim for refund) is common for IT and FBT. If there is a demand fopr FBT and refund for IT, the A.O. can adjust FBT demand agaisnt IT refund and vice versa. Therefore, you can take a chance adjust FBT liability and claim refund of lesser amount. Besides claim in retrun, send a request and clarificatory letter to the A.O. stating that mistakenly tax dues for IT and FBT were paid in combned manner or due to mistake IT paymetn was excessive so treat a part of IT paid towards FBT payable and refund lesser amount. As the issue is new, I think it will be considered in a purpose seeking manner. However, due to difference in rate of interestr payable by govenrment and by assessee, the departmetn may claim interest on FBT separately and grant interest on IT refund separately.

AI Summary

Taxpayer Inquires About Adjusting Excess Self-Assessment Tax Against FBT Liability; Experts Advise Requesting Adjustment via Assessing Officer A user inquired about adjusting excess self-assessment tax paid against their Fringe Benefits Tax (FBT) liability for the same financial year. One respondent, Tushar Sharma, stated that the excess self-assessment tax cannot be adjusted against FBT payable. Another respondent, Dev Kumar Kothari, explained that while Section 115 WL and Section 237 allow for adjustments between FBT and income tax refunds, it is advisable to formally request the adjustment from the assessing officer. Kothari suggested that due to the novelty of the issue, it might be considered favorably, although interest calculations might differ for FBT and income tax refunds.