Tds deposited on provision made during march 09

This query is : Resolved

CMA ANAND (Querist)
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17 December 2011 Sir, we have made provision for March'09 and TDS has been deducted on the same, but deposited the TDS before 31st may 09, but the IT department has sent a notice for interest on late deposit of TDS mentioning the due date as 7th April'09 and also demand for late deposit of TDS, so it need expert suggestion. Please so an openion on this ...

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 December 2011 You may write a letter explaining that the amount paid is not towards monthly deduction
(like salary or other payments) but it is in respect of provisions (like interest payable) made on the last FY day.
.
In case the payments were made during the FY itself or the provision made is in connection with the salary ... AO may be right in these situations.

.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 December 2011 The demand is raised mainly because of a common error made by most of the deductors. The mistake committed is selection of option paid by cash instead of paid by book entry. In case of paid by cash due date will be 7th April. Therefore, you simply need to revise your TDS return and select option paid by book entry. After filing the revised return write a letter to your TDS AO intimating this mistake and stating that correction statement has been filed. Also enclose acknowledgement of the revised return filed by you.

This is quite common problem so no ned to worry.

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CMA ANAND

CMA ANAND (Querist)
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21 December 2011 very very thankfull to you sir

ANAND