income tax
p k kapoor
(Querist) 09 November 2010
This query is : Resolved
There is an unregistered agreement with a state govt undertaking for hiring of a building and rent is paid on monthly basis. TDS is being deducted in the current finanicial year 2010-11. However, TDS has not been deducted in the previous financial year2009-10.
My query is:
1.Are we required to pay TDS of previous year with interest.
2. If the answer to 1.is yes. Then, State Government undertaking has already filed IT return and supposed to pay Income tax as payable on total income for FY 2009-10. As such if tax is again deposited through TDS by us, this will amount to double payment of tax. Pl Clarify.
3. If tax is not deducted even now for previous financial year. How to convince IT authorities if any question is raised in future for such non deduction.
R.Ramachandran
(Expert) 09 November 2010
Dear Mr. Kapoor,
If you had not deducted TDS in the year 2009-10 you cannot do so now. At worst you will only be called upon to pay penalty for non-compliance with the provisions of law. Till such time, you can keep quiet.
pawan sharma
(Expert) 09 November 2010
I concur with RAmachandran on that point.
Sathyan A.R.
(Expert) 09 November 2010
section 201(1)empowers the TDS officer to treat you as assessee in default in repect of the amount of TDS you had to dedcuted nd demand from you the tax. Hoever if you prove that the other person has already paid amount, you will be charged interest as per the provison of the section 201(1A) of the act on the amount not deducted from the date on which such tax was deductible til the day it was paid.
Adv.A,R.Sathyan
soumitra basu
(Expert) 16 November 2010
In this connection my reply shall be :
1. For non deduction of TDS the entire expenditure of rent can be disallowed by the a.o. u/s. 40(a)(ia).
2. However, you may deduct and deposit the tds amount during the current financial year and claim the deduction.
3. You may avoid penalty for non-deduction of tds in view of Supreme Court Judgment in the case of Hindusthan Coca Cola.
R.Ramachandran
(Expert) 16 November 2010
A small request to experts. Whenever any judgment is mentioned, try to give the citation so that persons interested can view such judgments and note the contents.
