Tds

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Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2014 My question is what meant these section 201(1A)/206C(7)
and Interest under section 220(2)?
Please solve my quire.

Rupesh Jain

Rupesh Jain (Expert)
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26 December 2014 section 220(2)

S. 220(1) provides that any amount, otherwise then by way of advance tax, specified as payable in the Notice of Demand u/s.156 (hereinafter referred to as such Demand) shall be paid within 30 days of service of such notice. Under certain circumstances, the Assessing Officer can also grant less than 30 days period for payment of such Demand with which we are not concerned.
1.2
S. 220(2) provides that if such Demand is not paid by the assessee within the specified period, he is liable to pay simple interest at the rate of 1½% for every month or part of a month for the period of default in payment of such Demand. It is also provided that if the amount on which the interest is payable under this Section is reduced as a result of any rectification Order, Appellate Order, etc. then, the interest payable by the assessee shall also be accordingly reduced.

1.3
Once such Demand is raised, many a times, the assessee makes full payment thereof within the specified period and thereafter, contests such Demand in appeal on the grounds which would depend upon the facts of each case. In many such cases, the Appellate Authority decides the appeal in favour of the assessee as a result of which the assessee becomes entitled to get refund of the amount paid earlier as a result of such Demand. In many cases, the Department grants refund to the assessee in respect of payment made as a result of such Demand and also contests the Appellate Order before the Appellate Tribunal as well as before the Court. In many such cases, the Department may ultimately succeed and the relevant issue may get decided in favour of the Department as a result of which the Department issues another Notice of Demand for collection of the original Demand paid by the assessee which was subsequently refunded to him on account of the said order of the lower Appellate Authority. In all such cases, the issue arises as to whether the assessee is liable to pay interest u/s.220(2) from the date on which he was granted refund as a result of the Order of the lower Appellate Authority upto the date on which he again makes a payment of such Demand which becomes payable on account of order of the Tribunal or the Court. In short, in such cases, the issue is as to whether the Department is entitled to collect interest u/s.220(2) on account of the refund granted to the assessee as a result of the earlier Appellate Order which subsequently got reversed.

section 201(1A) for intt on tds non deduction and non deposit on or before due date

like that 206c for tcs dedudction and deposit.

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2015 Thank you Sir.
Sir i ask you one question is
Whats meant section 201(1A)

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