Penalty in caseofmistake in showing TDS amount

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Jignesh Desai (Querist)
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22 April 2011 Say , a person created an F.D. on 1-4-2010 of1,50,00,000 paying interest @ 8 % p.a. This F.D. matures on 31-3-2011 . Let's assume this is the person's Total Income . His Income for the year would be 12,00,000 . He receives TDS Certificate for1,20,000 . However , when filing his return , he mistakenly omits to show the TDS amount in his income ,shows only 10,80,000 as his Income & pays tax on this amount . The tax he pays would be(34,000 + 60000 + 84000) * 103 % =183,340 . Apart from this he has already paid1,20,000 by way of TDS . So, the total amount he has paid is3,03,340 . The actual tax he had to pay was(34,000 + 60000 + 1,20,000)* 103% = 2,20,420 - 1,20,000 (TDS deducted) =1,00,420 .

The maximum limit till which the Income Tax authorities can check or scrutinize any accounts is 6 years (I think ) . Now , exactly before this period gets over , the Income Tax Department notices this mistake . What would be the implications ? At that time can the assessee show the TDS Certificate for the year in question (P.Y. 10-11) & escape paying any interest or penalty ?

In case , he himself notices this mistake at a later time (that he has paid more tax for P.Y. 2010-11 , till what period of time after the returns have been filed for P.Y 2010-11 , can he actually claim back the extra tax that he paid for the P.Y. 2010-11 ?

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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22 April 2011 U CAN FILE A REVISED RETURN

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Jignesh Desai

Jignesh Desai (Querist)
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27 June 2014 think Section 154 process has to be done

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