What is the sequence of payment of tax where that taxpayer has liabilities for previous months also?


Section 35(8) prescribes an order of payment where the taxpayer has tax liability beyond the current return period. In such a situation, the order of payment to be followed is: First self-assessed tax and interest for the previous period; thereafter self-assessed tax and interest for the current period; and thereafter any other amounts payable including any confirmed demands under   section
51.  This sequence has to be mandatorily followed.

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