regarding tds
Advocate Abhijeet singh
(Querist) 14 January 2011
This query is : Resolved
HELP HELP it is very urgernt for me
An employer issued form 16 to employee on 22-04-2010 but later on it was noticed that the form 16 was issued inadverently because the tax was calculated incorret and tax liability amounting to Rs. 26500 was also found recoverable from that employee . As such he revised the form 16 and the tax liability deposited along with interest @1% per month on behalf of employee and revised form 16 issued by employer . Is the action of the employer revising the form 16 is correct or not.
The following ans given by expert:
yes. mistake was corrected and form 16 also amended is correct, it will avoid penalty for your employer
Now tell me the employer revised the form 16 as on august and also revised the compay quatertly tds return . Income tax department charge panalty under section [Section 271(1)(c)][Section 271C] on employer is it right or wrong plz tell me . its very urgent
Arul Kumar
(Expert) 14 January 2011
Penalty will be imposed when there is a willful non-compliance of tax obligations and the action is taken by Assessing officer or Commissioner of Income tax. In your case you have corrected the mistake and complied with by paying tax with interest and also filed revised return. Hence, in my openion your company will not be penalised.
soumitra basu
(Expert) 20 April 2011
You became over anxious.
Firstly if there is short deduction of tax you could very well advise the employee to deposit the balance tax.
Though you have taken the alternative option, it is also correct.
Be sure penalty is not applicable under section 271(1)(c) on this type of cases.
Penalty is not also applicable under section 201 also. You have paid the interest as compensation for late deposit of tax. Plese read the judgment of Hindustan Cococola Breverage of Supreme Court.
Do not get nervous. We are still alive.
