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Tds penalty

Amith (Director) (36 Points)

20 February 2012

a sopt inspection was conducted and income tax dept found that i had not detucted tds for rent paid and they isued demand notice to pay rs 56845/- ... i deposited the 63935/- with interst ... but after a year IT dept issued a demand notice of 56845/- penalty u/s 271c .... how to appeal and will i be relived witout paying penalty

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4 Replies

CMA Ramesh Krishnan (Cost & Management Accountant) (71604 Points)
Replied 20 February 2012

Just reply for the notice to department enclsoing the tax paid challan

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Submit the letter mentioning the challan reference no. and attach the copy of challan with the letter to the concerned ITO.

suresh (student) (44 Points)
Replied 21 February 2012

Hi friends,

In our company we also received the notice from IT department for filling the revised return for the f.y.2006-07 for the 4 quarters .but when i try to download the consolidate file the nsdl website that shows us your challan details & detectee details are does not match. so please help to know the solution to get the consolidate file for revised return purpose.

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 21 February 2012

Mr.Amit

No Income-tax Authority can raise demand towards penalty unless an order is passed impossing the penalty. No order impossing penalty can be made without giving an opportunity of hearing to the concerned assessee.

In your case you have been telling that it is a demand notice.

* Did you receive a show cause notice before receiving the demand notice u/s 274 of Income-tax Act 1961?

* If you are in receipt of the receipt of the show cause notice did you file an explnation explaning the reasons for failure to deduct the tax at source?

* Did you request the Income-tax Authority to accept your explanation and drop the penalty proceedings initiated against you?

*If you file an explanation if the Income-tax Authority accepts your explanation the penalty proceedings would have been droped.

*if your explanaltion is not accepted by the Income-tax Authority he will pass a speaking order U/s 271C of the Income-tax Act, 1961 directing you to pay the penalty and raise the demand u/s 156 of the Income-tax Act, 1961 - the demand notice should be issued in the prescribed form seperately alongithe with the Penalty Order.

Now you please answer the above questions one by one.

If it is the fact that you have filed an explanation and the said explanation is not accepted by the Income-tax Authority, consequently the penalty order passed and the demand is raised- you have a right to prefer an appeal before the Commissioner of Income-tax (Appeals) within 30 days from the receipt of the penalty order.

After prefering the appeal and before the expiry of the period mentioned in demand notice (genrally 30 days) you can request your assessing officer to keep the demand in abeyance till the dipsosal of the appeal by the Commissioner of Income-tax (appeals) and also request the assessing officer not to treat you as a defaulter u/s 201 till such time.

Feel free to ask any more questions in this regard.

Best Wishes

Sathikonda