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Demand notice u/s 156

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17 November 2013 Assessee has received a demand notice U/s 156.The reason behind shortfall of Tax paid is non credit of TDS deducted in the Form 16,in Form 26AS. The assessee has brought this to the notice of the employer and has requested to revise the ETDS returns, but no steps have been taken in this regard by the assessee's employer..The O/s demand is Approx 30,000/-

1) Will the Department start recovery proceedings?
2) Now what are the remedies to the Assessee?
3) Will he be liable for the demand notice?
4) Can he contend the demand notice in the court of law stating the facts of Neglegience from his employer?

17 November 2013 WRITE LETTER TO EMPLOYER TO FILE CORRECTION RETURN OF TDS AND IF NOTHING IS DONE IN 15 DAYS THAN WRITE AGAING TO EMPLOYER AND ALSO WRITE TO HIS TDS OFFICER ALONG WITH COPY OF BOTH LETTER FILED WITH THE EMPLOYER

17 November 2013 Dear Puneeth,

In addition to Sanjeev's advice (which is really helpful as it creates pressure on the employer to avoid assessee in default position), you can also make submissions to the AO using delhi High Court decision in Citicorp case which even Income tax authorities have accepted.

You may refer to:

http://www.corporatelawreporter.com/wp-content/uploads/2013/10/citicorp_3i_infotech_TDS_Credit.pdf


You can make submission to the assessing officer that TDS credit cannot be denied on account of wrong reflection in Form 26AS.

Please refer:


You can also draw AO's attention to CBDT instruction 05/2013 dated 8 July 2013

http://www.irsofficersonline.gov.in/Documents/OfficalCommunique/17112013105228.PDF





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