Error in ITR Utility: Penal interest is automatically getting added to taxpayers who don’t have to pay advance tax, check the details

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Chartered Accountants have identified an error in the Income Tax Return (ITR) utility's calculation of Section 234C interest, potentially impacting taxpayers with liabilities under Rs 10,000. This flaw could lead to incorrect tax notices, delayed refunds, and processing mismatches. Experts urge the Income Tax Department to rectify the issue to ensure accurate computations and prevent unnecessary disputes for taxpayers.