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Vivek (Querist)

01 October 2012 Dear Sir,
In case of an individual assessee whose case is liable to audit.
Payment to a sub-contractor is Rs. 1 lac and thereon said assessee did not deduct tds.
Now please advise me if the case comes in scrutiny, then department will impose penalty equal to tds amount ie Rs. 1000/- or
the whole payment would be disallowed as business expenditure.

If yes then under which section.

Please clarify.

Nitesh Parmar

Nitesh Parmar (Expert)

01 October 2012 Any assessee having turnover exceeding Rs.60 Lac for financial year 2012-13 liable to tax audit and in case Profit below the limait of 44AD Audit Required.
In case TDS is not deducted said expenses will be disallowed and in case Secrutiny Penalty will be payable.

Pankaj Gupta

Pankaj Gupta (Expert)

01 October 2012 The Payment of Rs 100000 will be disallowed u/s 40(a)(ia).
And the penalty for non deduction of TDS will be the amount of TDS ie Rs 1000.

Pankaj Gupta

Pankaj Gupta (Expert)

01 October 2012 The penalty for non deduction of TDS will be imposed u/s 271C.

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