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Tds deducted but not remitted by deductor

suri (director) (30 Points)

07 May 2017

i have received a demand notice for TDS not remitted by the deductor.Despite giving proof of deduction and details of deductor, the AO is not cancelling the demand notice issued under section 1433. CBDT has clearly issued press release that such demand against the assessee is against income tax law, the AO is adamant. what shoul be my next action?

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14 Replies

CA Rashmi Gandhi (Chartered Accountant) (86280 Points)
Replied 07 May 2017

Mail me notice at rash.0903 @ gmail.com

2 Like

Anil Talukder (86 Points)
Replied 07 May 2017

Write a letter to CUT (TDS) having jurisdiction over the deductor mentioning the default of deductor and request him to take appropriate action against the deductor. It is most likely that CIT will not take any action. After 15-20 days write one reminder letter. In all these letters mention the fact of demand raised on you and that AO is not vacating the demand. It is again likely that CIT will not act on your reminder letter too. Then file an RTI application to know the status of action upon your application. Then no CIT can dare to sit idle. Also after receipt of RTI reply if you are satisfied then no further action from your end is necessary. Thereafter write to AO once again to reconsider the demand in the light of CIT TDS 's action outcome.
Procedure is very tedious and time consuming but you have to bear.

Devender Donthula (58 Points)
Replied 07 May 2017

one more option is to consult the deductor about the non remittance

RAMA KRISHNAN (247 Points)
Replied 08 May 2017

it's very simple... if the demand is below 25000 rs, file a rectification application before your jurisdictional AO along with your original form 16/16A. if the demand is above 25000 rs, submit indemnity bond along with form 16/16A. if the demand is above 100000 rs.. unless your tds reflects in form 26AS, your demand cannot be reduced. so for that filing of e-tds statement by your deductor is mandatory. above all applicable to individuals and huf only. I am being an assessing officer, reduced hundreds of demands on applications made by the assessee.

1 Like

suri (director) (30 Points)
Replied 08 May 2017

Sir, the issue is clearly captioned as " TDS deducted not remitted by the Deductor "

How do you expect it to appear in 26 AS.my AO is also replying like you, without giving importance to latest amendment in income tax law.

Please refer to CBDT memorandoum dated 11th march 2016 on the website www.incometax.gov.in.

Advise me post viewing this directive.

Thanks

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86280 Points)
Replied 08 May 2017

You have to give application to your AO for correcting tax credit mismatch wiyh affidavit on stamp of Rs.100/- in given format.

I self do this for many clients.Even demand of A.Y. 08-09 is also reduced & refund raised by AO.

1 Like

RAMA KRISHNAN (247 Points)
Replied 08 May 2017

filing rectification application with your jurisdictional AO is the simplest way sir

RAMA KRISHNAN (247 Points)
Replied 08 May 2017

if your jurisdictional AO doesn't acting on your rectification application, then file grievance petition through cpgrams or e-nivaran which are monitored by cbdt directly

2 Like

suri (director) (30 Points)
Replied 08 May 2017

Madam,

If i act as per your suggestion, i correct my income to 90% and rework my tax liability .

What about the deductor who cheated both Govt and me by deducting 10% of my income.

Non remittance of TDS is a serious offence and punishable, even imprisonment.[This reply meant for Rashmi Gandhi's suggestion ]

In my opinion the IT dept should chase the deductor once i submit proof of deduction by agreement copies etc. to AO.Please correct me for my understanding. Thanks.

CA Rashmi Gandhi (Chartered Accountant) (86280 Points)
Replied 08 May 2017

Definately deptt will yake action against deductor. Deptt is not to pay what he didnt received. They will serve notice against deductor for clarification.

1 Like

jacinthamary (accountant) (848 Points)
Replied 08 May 2017

Check the mail id of your ITO ward after logging into your PAN.

1 Like

jacinthamary (accountant) (848 Points)
Replied 08 May 2017

Send a mail stating the tan of your deductor and also that deductor is not remitting TDS amount.

1 Like

Kshitij Pachghare (2 Points)
Replied 11 May 2017

Sir, Can you please explain, what an indemnity Bonds means and means, and what if the employer didn't provided Part A of Form 16 as per TRACES

RAMA KRISHNAN (247 Points)
Replied 11 May 2017

Mr. Ksh*tij mail ur WhatsApp no. to 9445955357, I'll send you the format of indemnity bond. indemnity bond to be submitted when you have form-16/16A but your tds details not reflected in form 26AS