Non deduction of tds

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This query is : Resolved

Avinash Tripathi (Querist)

15 May 2014 as we know that individual and huf are liable to deducted tds only when they are liable for tax audit u/s 44ab. my client dint have professional receipt so as to qualify for tax audit for a.y 2012-13 and 2013-14. Although to b on safer side my client deducted tds for a.y 2013-14. Now he dnt want to deduct tds on paymnts made u/s194J. My questio is now when he is not deducting tds, what is the procedure for this. I mean do I need to surrender the tan no or inform the tax authority.

Sandeep Dharar

Sandeep Dharar (Expert)

15 May 2014 Yes u can surrender ur TAN or it will get cancelled automatically if u do not submit TDS return for a FY.

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Avinash Tripathi

Avinash Tripathi (Querist)

23 June 2014 mr. sandeep thanks for ur answer. i would like to know what is the procedure of surrending TAN no

Sandeep Dharar

Sandeep Dharar (Expert)

23 June 2014 Cancellation/Surrendering of TAN can be done in two situations;

CASE 1- Where duplicate TAN has been allotted;

CASE 2 – Where TAN allotted, is not required anymore by the assessee/deductor.

In CASE – 1, the deductor has to approach the NSDL for cancellation of the ‘Duplicate –Unused TAN. For this, an application Form, which is applicable for ‘Changes & Correction of TAN’ needs to be used. The same can be downloaded from the NSDL website and is also available with TIN-FCs/other vendors. The application can be made online as well as in physical form. In this way, the ‘Duplicate TAN can be cancelled.

In Case 2, the deductor has to make an application with the jurisdictional A.O. (TDS), on a plain paper, requesting for cancellation of TAN and state reasons for such a request.

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