Penalty u/s 272a(2)(g)

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2016 The assessee had purchased House on 27.5.14 for 70 lacs. And TDS was not deducted at that time and made full payment to seller.
He deposited the TDS on 10.1.2015 and generated Form 26QB and Form 16B on 15.1.2015.
Later on demand, he deposited Due Interest on Late deduction Rs.6300/- on 12.7.2016 and cleared the matter.

Now Department has issued the Penalty Notice u/s 272A(2)(g) for failure to generate Form 16B in due time (which is 15 days of due generation of 26Q)

Since the assessee had already paid the interest on late deduction and Form 16B cannot be generated before deposit of TDS and TDS was deposited late.\

Is this Penalty is Justified?

Z (Expert)

09 August 2016 It does not appears that the levy of penalty is correct. I wish to see the documents submitted. There might be some error in that.
If possible send that(form 16B and 26QB) to my mail address
prateek63@yahoo.co.in

As per sub rule (3A) to rule 31
Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person responsible for deduction of tax under section 194-IA shall furnish the certificate of deduction of tax at source in Form No.16B to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No. 26QB under rule 31A after generating and downloading the same from the web portal specified by the Director General of Income-tax (System) or the person authorised by him.

Sub rule 4A to 31A says [as on the relevant date for the above case]
Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) or sub-rule (4), every person responsible for deduction of tax under section 194-IA shall furnish to the Director General of Income-tax (System) or the person authorised by the Director General of Income-tax (System) a challan-cum-statement in Form No. 26QB electronically in accordance with the procedures, formats and standards specified under sub-rule (5) within seven days from the end of the month in which the deduction is made.

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2016 Please guide me the points on witch reply should me made to avoid the penalty.