Bharat Bhushan (advocate) 14 April 2010

Non payment of TDS amount

An old lady is a pensioner more than an exempt limit, she was instruceted by the bank to leave 17000 in her a/c so that a bank could deduct TDS. Lady assured the bank also by phone that she will not withdraw the said amount. The last date of deduction was 31/03/10.

In this course on 28th of march the pension amt credited in her a/c and she withdrew entire ammount not even leaving the 17000 for the TDS on 2/3/101

Now the question is this what will be the consequence in mode of penalty or any other thing. Secondly what will be accountability of the Bank who did not deduct the amount.

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8 Replies

A V Vishal (Advocate) 14 April 2010

Why is the TDS being deducted for? Your query is incomplete, state facts.

Bharat Bhushan (advocate) 15 April 2010

Regards,

Actually that lady is earning3.5 lac aprx and her tax liability is of 17,000, that amount she needs to remain in the bank to mitigate her tax as informal request by the bank.

If bank not recieved that amount or rather deducted the amount how she will get TDS certificate from the bank. Will she able to deposit the amt at the time of filing return?

Vineet (Director) 15 April 2010

The liability to deduct TDS was with bank and the lady is no way responsible for failure to deduct TDS. The bank was asking the lady to keep this amount in her account only for its convenience to collect the TDS and deposit it with government. If bank has failed to deduct TDS from disbursement, it is the bank who will be liable to be penalised. No action lies against the lady. However, I am sure bank will also do its accounting jugglary and pay TDS by creating an overdraft against the lady which it will recover from next pension disbursal in April. So keep an eye on next disbursal and demand for TDS certificate from bank.

Vineet (Director) 15 April 2010

And yes, if bank has not deducted or paid TDS on behalf of lady, she can always pay her tax liability by way of self assessment tax at the time of filing of return.