22 February 2018
I have been regularly and on time been paying my TDS as a deductor. I have been regularly and on time been filling my TDS returns. The deducted amount is visible on the deductees form 26as.
Recently all my physical form 16a had been lost although the digital versions downloaded directly from TRACES website were there on my email sent by my CA.
My accountant not wanting to search the email for the form 16a requested a download directly from TRACES website. Now my CA is saying that a penalty of Rs 100 per day will be charged from the Q1 FY 2013-2014 per return because there is a provision in the IT Act that if the forms are not "furnished" within 15 days from the date of the filling the return a penalty of Rs 100 is applied per day. My CA did not tell me the section but on googling I think it is section 272A of the Income Tax Act.
Now I calculated the penalty amount comes to Rs 6.5 lacs. Which is absurd since I have done nothing wrong and have paid the TDS on time and have filled the return on time.
My question is there a upper limit to the penalty since the TDS amounts are very very small.
Secondly will my account come under scrutiny.
Thirdly what does the word furnished imply in above mentioned section of the act. serious reply from CA's, tax lawyers and other people who have dealt with this issue.
22 February 2018
if digital versions downloaded directly from TRACES website is available then there is no need to worry. To answer your query: - Maximum penalty is 100 Rs per day or the total TDS amount whichever is lower - Scrutiny cases will depend on many factors. It could be one of the reason but chances are less - Literal meaning shall be that it should be given to the party
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