Please explain section 272a of income tax act 1961 (Income Tax)

This query is : Resolved

ARYAN SHARMA

( Author )
26 May 2012

Dear sir ,
i am also proprietor of a firm and take a TAN NO in april 2010 but no tax deduct & submit till date and no return fill still please tell me can i liable for penality and how much penality can be impose on me ( i have no any NOTICE Received from Income Tax Department please tell me as soon as POSSIBLE

PEDDINTI VENKATESHWR RAO

( Expert )
26 May 2012

Dear Mr.Aryan Sharmaji,

First of all, you have to declare your total income. Than ITO will impose 10% of your total income as tax liability in case of no justification from your end else it will not exceed as per your previous returns.

272(d) fails to comply with the provisions of section 139A, he shall pay, by way of penalty, a sum which shall not be less than five hundred rupees but which may extend to ten thousand rupees for each such default or failure.

Soumitra Basu

( Expert )
26 May 2012

The question has been wrongly understood by Mr. Venkateshwar Rao
Though you got the TAN, you are responsible for filing quarterly TDS Return irrespective of the the fact that you have not deducted any tax. It is a technical fault and as decided by the Supreme Court Hindusthan Co, no penalty is liable for technical and venial breach of law.