Tds
This query is : Resolved
07 June 2014
An employee getting salary Rs. 180000/-p.a. and Interest Rs. 280000/-p.a. from a prop. firm.
firm is deducting TDS on Interest paid to employee but no tds on salary.
My question is whether TDS would be deducted on Salary as his Total income is 460000/-
Pls reply
firm is deducting TDS on Interest paid to employee but no tds on salary.
My question is whether TDS would be deducted on Salary as his Total income is 460000/-
Pls reply
07 June 2014
yes. the company should deduct tds on the basis information available regarding the total income
07 June 2014
yes as information is available then deduct tds.
22 August 2016
Thanks...
I would also wants to know what will be the consequences if an assessee received a defective return notice and wants to not respond that notice.
If not responding that defective return notice, what will be the consequences. Kindly reply
I would also wants to know what will be the consequences if an assessee received a defective return notice and wants to not respond that notice.
If not responding that defective return notice, what will be the consequences. Kindly reply
27 July 2025
Sure! Here's a clear explanation for both your queries:
---
### 1. **TDS on Salary when Employee also receives Interest from Proprietor Firm**
* If the **employee receives salary and interest income from the same firm**, the firm should consider the **total income** while deducting TDS.
* In your example, salary = ₹1,80,000 and interest = ₹2,80,000; total = ₹4,60,000.
* Since the total income exceeds the basic exemption limit, **TDS should be deducted on salary income too**, considering the total income to estimate tax liability.
* The firm deducting TDS only on interest and not on salary is **not correct** if they have the information about total income.
---
### 2. **Consequences of Not Responding to Defective Return Notice**
* When Income Tax Department issues a **Defective Return Notice (under section 139(9))**, it means the filed return has some errors or missing information.
* If the assessee **fails to respond within the stipulated time** (usually 15 days from notice), then the return is considered **invalid**.
* Consequences:
* The return is treated as **not filed**.
* The assessee **loses the benefit of filing return** for that assessment year (e.g., refund, carry forward losses).
* **Penalty or notice** under section 271(1)(b) or other provisions can be initiated for failure to file a valid return.
* It may lead to **assessment based on best judgment** by the Assessing Officer.
---
**In short:**
* Respond to defective return notices promptly to avoid losing benefits and penalties.
* Firms should deduct TDS properly considering all incomes if they have the info.
---
If you want, I can help you draft a reply for the defective return notice or explain TDS calculation in detail. Want me to?
---
### 1. **TDS on Salary when Employee also receives Interest from Proprietor Firm**
* If the **employee receives salary and interest income from the same firm**, the firm should consider the **total income** while deducting TDS.
* In your example, salary = ₹1,80,000 and interest = ₹2,80,000; total = ₹4,60,000.
* Since the total income exceeds the basic exemption limit, **TDS should be deducted on salary income too**, considering the total income to estimate tax liability.
* The firm deducting TDS only on interest and not on salary is **not correct** if they have the information about total income.
---
### 2. **Consequences of Not Responding to Defective Return Notice**
* When Income Tax Department issues a **Defective Return Notice (under section 139(9))**, it means the filed return has some errors or missing information.
* If the assessee **fails to respond within the stipulated time** (usually 15 days from notice), then the return is considered **invalid**.
* Consequences:
* The return is treated as **not filed**.
* The assessee **loses the benefit of filing return** for that assessment year (e.g., refund, carry forward losses).
* **Penalty or notice** under section 271(1)(b) or other provisions can be initiated for failure to file a valid return.
* It may lead to **assessment based on best judgment** by the Assessing Officer.
---
**In short:**
* Respond to defective return notices promptly to avoid losing benefits and penalties.
* Firms should deduct TDS properly considering all incomes if they have the info.
---
If you want, I can help you draft a reply for the defective return notice or explain TDS calculation in detail. Want me to?
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