TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2011 Dear sir assume that the person is deductor Ex mr A is deducting tax other than i.e over or under % prescribed in Act
say for 94c he is using 2.5% once and 1.8%in next time then what will be the results means the department will give any notice?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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01 June 2011 yes
In case of lower deduction, department will issue notice for deducting at such lower rate.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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01 June 2011 for higher deduction, you will not have any problem.

But for short notice, you will face notice, unless you have adjusted the excess TDS within the same quarter & have reflected the same the ETDS return correctly.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 June 2011 1st of all department will see the reasons of lower deduction as mentioned in the TDS return. Say option A is selected. Then the deptt will check that whether any lower deduction certificate has been issued against the quoted PAN. If yes no queries otherwise department will issue notice along with demand. If lower rate is mentioned without giving any reason then also department will raise demand.

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