04 February 2014
We have recieved certificate u/s 197 for lower deduction of tax @ .72% for the limit of 2.72 crore from one of our supplier. However, mistakenly paid 4 crore without deducting tax @2% for balance amount i.e (4-2.72 crores), we have deducted TDS @.72% only.
Now, we have recieved Notice from TDS Department wherein they have raised the Demand for not deducting the TDS @ 2% for the balance 1.28cr.The supplier has already filed his Income tax returns. So, it means that they have already paid the INCOME TAX, for the particular year. Now, what is the meaning of asking TDS liablity by Department from us?..
06 February 2014
Submit Certificate in Form No.26A to the Department. As per 201 of the IT Act, 1961, any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII (TDS Provisions) on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident- (i) has furnished his return of income under section 139; (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 Form No. 26A(Rule 31ACB).
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