TDS deducted but not deposited
sunil rajpal
(Querist) 31 July 2010
This query is : Resolved
Subhiksha trading co. deducted TDS from Rent and the balance of cheque for the rent was duly given for six months but after the end of the finncial year it was found from forms 26AS that they have not deposited the TDS and now i have to file the IT return and in absence of TDS certificate i can not take the benifit of the TDS.Do i have to depsit the tax for which i have not received the TDS certificate.Kindly send me the options and the recourse/action which can be taken against the Tax deductors
A V Vishal
(Expert) 31 July 2010
Failure to Deposit TDS
if a person after deducting TDS fails to deposit the same, then:
(a) The person repsonsible for deduction is treated as ‘assessee in default’
(b) penalty a sum equl to the amount which he failed to deposit (SEC. 271C)
(c) simple interest @ 12% p.a. till the date of actual deposit in Govt. treasury.
(d) Rigorous punishment for a term which shall not be less then three months by may extned up to seven years and fine.( sec. 276B)
I suggest you file the tax returns on basis of the Form 16A issued to you. You will have to wait until the assessment is done, also on basis of the form 16A don't pay any tax even if the TDS credit is not reflected in the Form 26AS. Ask the deductor to comply with the provisions and deposit the tax and also file the e-tds failing which you may approach the department and complain.
soumitra basu
(Expert) 01 August 2010
You should file your Income Tax claiming TDS on the basis of Form No. 16A.
You can not say that the deductor has not deposited the TDS. It may happen that the deductor deposited the TDS but the quarterly return has not been filed.
Department can not demand the tax from you since it is not permissible under section 205 of the act.
