Regarding tds penalty u/s 234e

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Nishan Singh (Querist)
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15 January 2014 what is the latest status of penalty 234e.does it is compulsory to deposit it.
has any stay or writ petition on it?

Ganeshbabu K

Ganeshbabu K (Expert)
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15 January 2014 The constitutional validity of 234E has been challanged in the kerala high court in case of
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Narath mapila LP school vs UOI
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and vide interim order dated 18.12.2013 the high court has admitted the petition and granted a stay of proceedings for a period of 2 months

auditor sekar

auditor sekar (Expert)
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17 January 2014 Thank you MR. GANESHBABU for your valuable reply. I am filing for more than 100 government offices, in Tamilnadu. Due to late filing of FORM 24G by District Treasuries most of my Government Clients have filed belated returns and received notice for huge Interest from Department. We also want to file a stay petitions before UNION OF INDIA.

Could you please supply the copy of stay petition/link file to proceed in this issue.

Thanks in advance

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A.Senthil Subramanian

A.Senthil Subramanian (Expert)
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17 January 2014 Thanks Mr. Ganeshbabuji. In this situation I want to share my view also. TDS is deducted for the help of Government and ETDS work and Charges are accepted by the Deductor for this ETDS deduction. Deductors do all these to comply with the Incometax Act provisions. So the ultimate beneficiaries are, the Central Govt and Deductees. If Penalty u/s 234E imposed on the default by the deductor, he further suffered. So Incometax Department must see this fact and kindly remove or postpone the penalty u/s 234E and first properly inform and educate the Deductors in this regard. Because TDS Money properly deposited to the central govt, and only ETDS returns are delayed. Further there is acceptable shortage in ETDS return preparers and filers also. This is because of low income and high tension work on ETDS. All are causes for delay in ETDS filing. So deductors strongly oppose penalty u/s 234E and Department must kindly reconsider their penalty u/s 234E and may postphone the same. Because there must be a accaptable rule to file the ETDS returns. Deductors must realize their important part of work in this regard and must take due care to file ETDS in time. Particularly the Government Deductors must give due attention in this regard. Now, Rs.100 per day will be charged as penalty for non-taking of Form16A in TRACES with in the due date is an additional penalty on the head of Deductors. This is another headache to the Deductors. So all are severely oppose the penalties.

Nishan Singh

Nishan Singh (Querist)
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18 January 2014 thanks MR.Senthil it help me alot to aware the deductor

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A.Senthil Subramanian

A.Senthil Subramanian (Expert)
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19 January 2014 Thanks Mr. Nishan Sing, and thanks to Ganesh babuji. Please intimate the progress of the case in CA club. It will help a lot to all.

Nishan Singh

Nishan Singh (Querist)
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05 May 2014 i have deposited 3 TDS chalan on my client TAN number by online from SBI at 28/4/2014 for the 4th qtr AY 2014-15.i retain the copy of chalan for the same. but after 2 days when i confirm at OLTAS CHALAN STATUS INQUIRY CIN BASED VIEW at https://tin.tin.nsdl.com/oltas/index.html There is only 1st chalan is matched and for the 2nd,3rd it shows the different-2 deducotr with different TAN.the last date of filing the TDS return is 15/05/2014.when i dial toll free no.of SBI they said to contact with concered branch in which my clint has bank a/c, from where the online payment has made.i went to branch they said that our branch is not deal the government/tax payments & we are not able to rectify it. kindly guide me what to do and where to go. while the date of TDS return is on the head. thanks

A.Senthil Subramanian

A.Senthil Subramanian (Expert)
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06 May 2014 Nishan, There may be no wrong TAN query in Tax payments through online. Because after filling the first page the associated name of the TAN is displayed in the next page after that we confirming the challan in next steps. Then how this foolish error occurred to you? How one challan only remitted in the correct TAN? You may contact the Internet Branch of SBI and TIN-NSDL also relating this problem.

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Ganeshbabu K

Ganeshbabu K (Expert)
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06 June 2014 However govt deductors already got relaaxtion here
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https://caclubindia.s3.amazonaws.com/cdn/forum/files/1219823_1294588_234e_circular_07_2014.pdf
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Karnataka High Court also stayed proceedings u/s 234E until further order in Adithya Bizorp Solutions India Pvt. Ltd. Vs UOI
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if any knows developments in this let us know

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