Section 80CCF deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2011 Hi,
I have a doubt on Sec 80CCF deduction. A person who applied for infrastructure bonds in 25th March 2011 has taken the same for claiming IT deduction. After 31st march 2011, his application is rejected and the amount is refunded.In this regard,What stand should the employer who deducted tax on the basis of the same should take?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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18 April 2011 First of all.. Its duty of the employer to deduct TDS bases on the available proof till 31/3/11.

Therefore any verbal assurance or temporary proof do no stand after 31/3/11.

So. TDS must be deducted without 80CCF.

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2011 Hi,

The employer had deducted TDS on the basis of the ack slip from IDFCI for Rs.20K. After 31st March, what is the option for the same since the units were rejected by IDFCI.

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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18 April 2011 Ideally.. the acknowledgement slip is not a valid proof...as its an ack to only application. Proof means.. unit statement copy.

So if possible, deduct the additional TDS w.e.f 31/3/11 & pay it now as TDS can still be paid till 30/4/11.