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Can tds return for earlier a.ys be submitted now?

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Arpan De

Articled Assistsant - CA Final

38 Points Posted on 30 May 2013

Dear All,

One of our clients in our office has a queer problem. He inadvertently did not submit the TDS returns for the A.Ys 2005-06, 2006-07, 2007-08 and 2008-09. However from the A.Y 2009-10 he has been submitting TDS returns regularly. Now an audit objection from the IT Department has called for explanation for non submission of TDS returns and consequent application of Section 40(a) (ia).

What I want to ask is: CAN THE RETURNS FOR THE SAID A.Ys BE SUBMITTED NOW TO AVOID APPLICATION OF 40a(ia)?????

Arpan De

Replies (1)

Rahul Jalan

Chartered Accountant

90 Points Posted on 31 May 2013

Dear concern There is no connection between contravention of sec 200(3) (i.e. Non-submission of TDS returns) and sec 40(a)(ia) ... No disallowance can be made under sec 40(a)(ia) merely because of non no-submission of TDS return, if the assessee has properly deducted and paid TDS within due date of filing of return u/s 139(1)... However penalty(u/s272) of Rs. 100 per day shall be levied for non submission of TDS return but it shall not exceed the amount of TDS... It may also be noted that finance act 2012 has deleted sec 272 and introduced new penal provisions under 234E and 271H for default in furnishing returns of TDS for the qtr ending 30-6-2012 and onwards.. But in this case provisions of sec 272 shall only be applicable..