assessee receives professional charges from a hospital where he performs operations. hospital made tds from the payments being made to the assessee after deduction of TDS. they did not deposit the TDS neither they filed TDS return. now they have stopped their working and not responding to the assessee for any documentry confirmation of TDS made. what steps are advised to be taken to substantiate the TDS claim?
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Non availability of supporting documents of TDS made but not deposited
Replies (5)
Quick Summary
Legal Ground: Under Section 205, the Income Tax Department cannot demand tax from the assessee if it has already been deducted at the source by the payer.
Evidence Required: Collect alternative proofs such as bank statements showing net receipts, professional contracts, invoices, and internal computation sheets from the hospital.
Action Plan: Claim the TDS in the ITR, wait for the inevitable Section 143(1) notice, and file a formal disagreement online by uploading the secondary evidence and citing Section 205 protection.
Thanks for your views. I have already taken the steps as suggested by you. I even went for rectification u/s 154 but the answer is same. disallowing the TDS. i have now filed an appeal with CIT for the solution. my question is that I dont have any written document other than the net receipt from the deductor as against the full professional charges. in my appeal submission what can I produce as proof of deduction other than this?
If there's no proof of the gross amount. Then show the net receipts as income. Submit revised computation of income to the CIT.
We do not have specific document to justify that short payment is towards TDS. but we have considered gross income as our income and claimed TDS to which the deuctor admits to be true and correct but now not responding for any communication. we have decided to submit a statement wherein there is a gross amount as well as TDS and the net amount which has been credited to our account. your opinion please.
TDS can't be justified without documentary evidence for the gross amount.
Filing revised computation is the reasonable option.
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