Notice of demand- late fee u/s 234e

TDS 800 views 1 replies

One of my clients purchased a property. He was required to deduct and deposit TDS @ 1% u/s 194IA. However, he did not. Subsequently, he deposited the tax vide challan cum statement 26QB belatedly without paying late fee u/s 234E. Consequently, department issued intimation u/s 200A and notice of demad u/s 156 for late fee equal to TDS amount u/s 234E. I don't agree with the contention of department to pay late fee equal to TDS. So, I want to challenge the notice. For this purpose, I want to write application for correction to department. My client is a NRI and resides out of India. he is not able to sign the letter in original.

Kindly suggest if this notice of TDS-CPC can be replied online? If yes, please guide through the procedure also.

Replies (1)
Sir, section 194-IA says that if seller is resident then buyer have to deduct tds us 194IA I is for all assessee, so notice is correct as per wording of section. I will suggest you to go through section 194-IA in detail then decide what to do. Please correct me if I am wrong.


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