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Tds

Karthik (Student CA Final ) (50 Points)

31 March 2016

Dear All,

Suggest me a solution,

My frnd company reveived Notice from IT Dept stating that TDS is short deducted for 1% instead of 2% in the year 2011-12, Actually to be deducted is 2%.now there is a short fall for 1% from the year 2011-12.

Can i deduct TDS in the current year for the amount?

If i deduct under what section i need to pay?

Do i need to deposit interest of 1% for delay deduction?

Can i prove that the person for whom the TDS to deducted have filed STI correctly, so i can escape the assessment?

is there any other solution?

Pls Suggest

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12 Replies

(Guest)

In Budget 2012 CBDT has introduced a provision w.e.f. 01.07.2012 by which a person who has defaulted in payment of TDS / TCS will not be deemed to be a person in default if he furnishes a certificate from CA to the effect that the person in respect of whom default is committed

(i) has furnished his return of income under section 139 (Return within the due date);

(ii) has taken into account such sum for computing income in such return of income; and

(iii) has paid the tax due on the income declared by him in such return of income,

and the person furnishes a certificate to this effect from an accountant in such form (26A)as may be prescribed:]

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Karthik (Student CA Final ) (50 Points)
Replied 01 April 2016

So can i get his STI of 2011-12 and get it certified by a CA.

(Guest)

In the case of Rajeev Kumar Agarwal vs. ACIT (ITAT Agra) the ITAT held that the insertion of second proviso to Section 40(a)(ia) is declaratory and curative in nature and it has retrospective effect from 1st April, 2005 , being the date from which sub clause (ia) of section 40(a) was inserted by the Finance (No. 2) Act, 2004.

Confirmed by HIGH COURT OF DELHI in the case of Commissioner of Income-tax-I v. Ansal Land Mark Township (P.) Ltd. in 2015