My client has filed TDS return for quarter 3 of FY 12-13 in April 2013 which attracts late filing fees u/s 234E. However, he is not willing to pay the late filing fees. Is there a possibility that a revised return be filed with NIL TDS and TDS already paid be claimed as a refund/adjusted in future year's TDS? The logic behind this strategy is that as per the amendments of Finance Act 2012, if the deductor has failed to deduct & pay TDS but the concerned deductee/payee has included it in his total income, paid tax alongwith interest thereon, filed ITR u/s 139 & furnishes a certificate from CA in Form 26A, then the deductor can claim expenses u/s 40(a)(ia) for such amount paid.
Kindly give your suggestions and comments whether this strategy will work out. Or else, suggest me a strategy by which late filing fees u/s 234E can be avoided.
CAclubindia
