Dear Sir/Madam,
can we avoid deduction of tds on salary u/s 201 by issue of form 26A by auditor? sec 201 refering only sec 192(1A).
First proviso to section 201(1)provides that 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 this Chapter on the sum paid to a resident or on tahe 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 (I.e. Form 26) to this effect from an accountant in such form as may be prescribed.
If all the following conditions are complied, then the assessee shall not be considered as an assessee in default.
CAclubindia
