Deducted tds not paid in bank

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2012 Hi,
One of my business associate deducted TDS from my payment and neither deposited in bank nor given form 16. We have reminded alot about this but he seems that not ready to deposit amount. As himself is CA, he may adjust this things in account. What action we can take upon him? Can you please guide?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

18 September 2012 Modifying for Detail:-

write a letter to Joint Commissioner or Add.CIT of TDS wing in your city who has jurisdiction over your deductor. In the letter, you must give i. Give facts about payment made to you and deduction of tax thereon. ii. Enclose copies of letter written to the deductor for issuing TDS certificates. Why should you write to Joint /Add.CIT ? The reason for writing letter to officer of joint /Add.CIT (TDS ) wing is that section 272A (2) of the I T Act provides for penalty for failure to furnish certificate and the sub section 3 of section 272A makes the Add CIT /JCIT ranges as an authority to impose penalty. The said section is as under (3) Any penalty imposable under sub-section (1) or sub-section (2) shall be imposed- (a) in a case where the contravention, failure or default in respect of which such penalty is imposable occurs in the course of any proceeding before an income-tax authority not lower in rank than a Joint Director or a Joint Commissioner, by such income-tax authority; (b) in a case falling under clause (f) of sub-section (2), by the Chief Commissioner or Commissioner; and (c) in any other case, by the Joint Director or the Joint Commissioner.Contravention of section 203 is falling under “any other case”, therefore only an Income Tax Authority of the rank of Joint Commissioner/Add.CIT can impose penalty for non issue TDS certificate.