Lower deduction of tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2012 I have deducted 1% TDS instead of 2% u/s 194C for company deductee for which income tax department served a notice for short deduction for Example Amount Credited Rs.100 tds is to be deducted Rs.2 but deducted Rs.1, please suggest what should be the next step.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 April 2012
Try to satisfy the ITO that the mistake was unintentional. Also obtain a certificate of the CA of the Company, certifying that the company has filed its return and duly paid the tax on its income.
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The amended provisions of Section 40(1) (ia) and Section 201(1A) are yet to be enacted but the intention of legislature emerges out clearly.
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