CPC (TDS) has issued a follow up communication to all deductors regarding nil TDS deposited during FY 2014. It may be possible that either the tax may not have been deducted at source or the tax deducted may not have been deposited, within stipulated time. In such case, this may lead to Short / Late Deduction and / or Short / Late Payment Defaults. CPC (TDS) has reminded deductors about the duty of the person deducting tax and suggested them the actions that needs to be taken in case of this kind of situation.
The issued communication has been given below:
Dear Deductor (TAN: ),
As per the records of the Centralized Processing Cell (TDS), it has been observed that there is “No Tax Deposited” during the period April 1 to August 31, 2014 while tax has been deposited in the corresponding period in Financial Year 2013.
It may be possible that either the Tax may not have been deducted at source or the Tax deducted may not have been deposited, within stipulated time. In such case, this may lead to Short / Late Deduction and / or Short / Late Payment Defaults.
Please make note of the following important information :
Please note the provisions of section 200(1) of the Income Tax Act, 1961; in this regard:
Duty of Person deducting Tax:
- Any person deducting any sum in accordance with [the foregoing provisions of this Chapter] shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs.
- Any person being an employer, referred to in sub-section (1A) of section 192 shall pay, within the prescribed time, the tax to the credit of the Central Government or as the Board directs.
- Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time,[prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority or the person authorized by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.
If the tax is not paid in accordance with the provisions of the Act, it may attract penal Interest u/s 201(1A) and 220(2) of the Act.
Any such interest paid above will not be considered as deductible expense under the provision of section 43(ia) of the Act.
Actions to be taken:
If any amount needs to be deducted and/ or deposited, immediate action may be taken at the earliest.
Please inform us with the reason for “No Tax Deposited” at firstname.lastname@example.org.
For any assistance, call our toll-free number 1800 103 0344.
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