tds
This query is : Resolved
CA.Ritu Agarwal
(Querist)
18 June 2009
an assessee forgot to deduct TDS On contracts with transporters and paid the full amount to him in the financial year 2005-06. This has come to the notice of Income tax Dept now while doing scrutiny. what can be the implication of this on the assessee. what should the asseess do now. please advice.
Ratan Sharma
(Expert)
18 June 2009
Hi,
The AO can levy the penalty of tax not deducted at source u/s. 271A. The penalty will be the amount of tax not deducted. The grounds you will have to take depends on the facts of the case. Try to establish the non existance of mens rea, mistake committed by inadvertantly, no intention to defeat any provisions of the law. submit the copy of return of that assessee and show that the full tax has been paid by that assessee and there is no loss of revenue. Assessee will take care in future. etc. grounds may kindly be taken. Try to convience the A.O.
The AO can levy the penalty of tax not deducted at source u/s. 271A. The penalty will be the amount of tax not deducted. The grounds you will have to take depends on the facts of the case. Try to establish the non existance of mens rea, mistake committed by inadvertantly, no intention to defeat any provisions of the law. submit the copy of return of that assessee and show that the full tax has been paid by that assessee and there is no loss of revenue. Assessee will take care in future. etc. grounds may kindly be taken. Try to convience the A.O.
CA.SHAHZAD SAYYED
(Expert)
18 June 2009
Dear Ritu
Non deduction of TDS may face following consequences.
1) Dis-allowance of Transport Expences u/s 40(a)
2) Penalty equal to TDS not deducted u/s 271C
3) Interest u/s 221 for defaulting Assessee
Assessee should do
show the non deduction is for genuine reason or there is no mal-intention but note this may remit the penalty but u can not save ur self for the disallawance of transport exps.
Non deduction of TDS may face following consequences.
1) Dis-allowance of Transport Expences u/s 40(a)
2) Penalty equal to TDS not deducted u/s 271C
3) Interest u/s 221 for defaulting Assessee
Assessee should do
show the non deduction is for genuine reason or there is no mal-intention but note this may remit the penalty but u can not save ur self for the disallawance of transport exps.
CA.Ritu Agarwal
(Querist)
18 June 2009
thanks
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