Urgent senior threatening fod ded tds...

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2013 Sir, One of a senior official who is working as a full fledged consultant says that he shall produce it return and hence no tax need be deducted from his monthly payment. I am of the opinion that 10 % under 194 J needs to be deducted.Is there any other section by which he can do so. I am afraid, because he is a "........Man? He can go any extent... What is the protection if my staff afraid of him does not deduct the tds.Even our Head also will support the "man".

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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21 January 2013 Your's is an threatening query. There is no section which exempts deductor for non deduction on production of ITR.

However there was an amendment last year exempting payer as not a "Assessee in default" on fulfillment of certain conditions u/s 201.

You will be paying interest from date of deduction to date of filing ITR by payee.

Further no penalty shall be levied u/s 221 except where AO feels that no good and sufficient reasons exist for non deduction.

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2013 Thank u Sirji.
Can we stop deduction(TDS)if the consultant submits a request for such non deduction and assures to file IT return to the organisation and he subsequently fails to submit the return to us.

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CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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21 January 2013 I think you are not clear with the reply. It is all in your hand. If you don't deduct tax you will still be liable for interest but you MAY (not necessarily) get saved from penalty.

Subsequently if he fails to submit ITR, it will be considered your fault only.

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2013 I got it sir. I even went through section 201. Is the person responsible for deduction(DDO) is responsible or the office as a whole.(Ours is a Central A Body).

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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22 January 2013 Generally it would be person responsible for deduction.