TDS short deduction-urgebt
This query is : Resolved
CA Rohit Garg
(Querist)
18 February 2011
sole proprieter has deducted the TDS on payment of interest to a company at a rate of 10% instead of 20% for the financial year 2007-08. NOw tax demans has been raised by the deaprtment(TDS wing)what to do?the tax deposited now will not be of benefit to the assessee and the company as the ITR cannot be revised.
18 February 2011
1. Pl check the applicability of proviso (turnover criteria) to section 194A(1) to the proprietor.
2. If applicable,the proprietor may try to convince the department with documentary evidence to the effect that the payee company has paid income tax on the interest and hence the short deducted amount if now recovered from the proprietor will lead to double taxation.
1. Pl check the applicability of proviso (turnover criteria) to section 194A(1) to the proprietor.
2. If applicable,the proprietor may try to convince the department with documentary evidence to the effect that the payee company has paid income tax on the interest and hence the short deducted amount if now recovered from the proprietor will lead to double taxation.
CA Rohit Garg
(Querist)
18 February 2011
Sir is there any specific section which say so?
18 February 2011
No sections. However, there are few case laws on identical situations in relation to "income from salary".
CA Rohit Garg
(Querist)
18 February 2011
Ok sir..Thanx..If u have any such case law plz reply with the same
Guest
Guest
(Expert)
18 February 2011
You may try by not depositing balance TDS and opt to face penalty proceedings u/s 271C where you may get relief on the ground of ground realities and reasonableness.
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