Dear Friend
I have to File Tds Return For Finalcial Year 11-12 in this case govt can leavy penalty u/s 234 e ?
Dear Friend
I have to File Tds Return For Finalcial Year 11-12 in this case govt can leavy penalty u/s 234 e ?
ACCORDING TO ME,
YES,
@ RS. 200.00 PER DEFAULTING DAY
THERE IS NO NEED TO PAY PENALTY
Do Pay 200 Per Day With A Max. Limit Of TDS Liability
S. 234E wasn't in force at that time (It was inserted by FA 12 is applicable from 1st July 12)
So it wont attract in your case
It may be noted that an asseessee, namely, Narath Mapila Lower Primary School has filed a writ petition questioning the constitutional validity of section 234E. The Hon. High Court of Kerala while hearing the writ petition granted an interim junction for a period of 2 months vide order dated 18th December 2013. There is likelyhood of Hon. High Court passing an order that the section itself is invalid.
So my dear friends, before asking your client to pay the penalty u/s 234e, just send in a letter to the ITO in TDS ward asking him to wait till the Hon. High court passes an order. If the High court passes an order favoring the assessee, the penalty needn't be paid.
Also note that once you have paid the penalty and High court passes an order favoring the assessee, you wont get the money back.
So my advise is to wait till the High court passes an order.
DEAR FRIENDS, RECENTLY, THE HO'NBLE HIGH COURT OF KARNATAKA ALSO STAYED OPERATION OF SEC.234-E. SINCE THE MATTER IS SUBJUDICE, IT ADVISED NOT TO PAY LATE FEE U/S.234-E.
NEXT, I FEEL SEC.234-E IS APPLICABLE W. E. F. 01-07-2012 AND HENCE CAN NOT BE LEVIED TO FY 2011-12.
Please quote the citations of the abovementioned case laws
Taxsutra Flash : Karnataka HC gives interim stay on Sec 234E demand recovery of 22-02-2014
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