Tds deducted but not deposited & not filed return of tds

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SANJAY (Querist)
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13 December 2011 DEAR EXPERTS,

A SCHOOL HAS DEDUCTED TDS FROM THE SALARY OF TEACHERS & NOT DEPOSITED IT TO THE DEPARTMENT.

EVEN IT HAS NOT FILED RETURNS OF TDS & IT HAS ISSUED FORM NO. 16A ALSO.

IT HAPPENED FOR 4 YEARS i.e. F.Y.07/08, 08/09, 09/10 & 10/11

NOW I.T.DEPARTMENT HAS ISSUED NOTICES TO THE TEACHERS FOR PAYING TAX.

MY QUESTION IS THAT SHOULD SCHOOL DEPOSIT TDS OF F.Y.07/08, & 08/09 ???
BECAUSE EVEN IF IT IS DEPOSITED, TEACHERS WILL NOT GET CREDIT OF IT..

WHAT SHOULD BE DONE REGARDING THIS MATTER ?????

anurag

anurag (Expert)
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13 December 2011 Gujrat high court in case of
CIT v. Om prakash gattani
has gave the ruling that it deducter defaluts in submitting tds deduted same can not be collected from the payee.
hence the department should take action against the school.

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SANJAY

SANJAY (Querist)
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14 December 2011 DEAR ANURAGSIR,

MY QUESTION IS THAT THE DEFAULTER SCHOOL IS MY CLIENT SO WHAT SHOULD WE DO ???

SHOULD SCHOOL PAY THE TAX DEDUCTED FOR F.Y.07/08 & 08/09 ????
BECAUSE EVEN IF SCHOOL PAYS THAT THEN ALSO TEACHERS ARE NOT GOING TO GET CREDIT OF IT....

MY MAIN QUESTION IS THAT WHAT SCHOOL SHOULD DO NOW ????

anurag

anurag (Expert)
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14 December 2011 The school is liable for penalty u/s 271 and interest, it can deposit the tds deducted and the teachers will get the credit after approval of ito, but it is a very cumbersome process.
instead school can return the tds amt to the teachers who will use this amt to pay there tax dues, and school can pay the penalty and the interest amt.
if school is very lucky then it may have not received any notice from the tds circle.

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