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Penalty on tds return filed

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CA Ayush Kacholiya

Practicing Chartered Accountant

54 Points Posted on 11 November 2013

I have a problem regarding TDS Demand raised by Income Tax Dept.

I filed TDS return of my client for QTR-1 of FY 2013-14 with TDS Deducted and Deposited for Rs 9947 and a recently a demand notice came for Rs 44220 /- which i m unable to understand that why they raised such a big demand amount.

Out of Demand of Rs 44220

Rs 35449 is on account of Rs Short Deduction

and remaining amount are for interest and other charges .

Kindly help me that what i should do for the benifit of my client.

Your Valuable Opinion will help me a lot.

Thanks and Regards

Replies (2)

Vivek B. Bhinde

Action Creates Energy !!

824 Points Posted on 11 November 2013

Dear Ayush,

Check the section under which the Return is Filed.

For example if the TDS belongs to 194 C & while filing the TDS Return if by error 194J is selected then the TDS is short deducted & paid automatically.

Revised return needs to be filed rectifying the section.

CA Ayush Kacholiya

Practicing Chartered Accountant

54 Points Posted on 11 November 2013

I have filed the same u/s 194C itself and the details are also showing in the same manner only.

I guess there may be a problem in PAN as i have verified the PAN of one of the deductee and his PAN is showing as invalid PAN on checking the PAN income tax site.