Recently, CBDT has issued a circular for computation of Income of Salaried Person for Asstt. Year 2015-16. In this circular the detailed information about Income Tax Deduction, Returns and other exemptions along with some penalties and many more. Thus the big part of Penalty is that for non-filing of statement or furnining incorrect infromation u/s. 271H which is as under:
If a person fails to deliver or caused to be delivered a statement within the time prescribed in section 200(3) or furnishes an incorrect statement, in respect of tax deducted at source on or after 1.07.2012, he shall be liable to pay, by way of penalty a sum which shall not be less than Rs. 10,000/- but which may extend to Rs 1,00,000/-. However, the penalty shall not be levied if the person proves that after paying TDS with the fee and interest, if any, to the credit of Central Government, he had delivered such statement before the expiry of one year from the time prescribed for delivering the statement.
At the time of preparing statements of tax deducted, the deductor is required to:
If a person fails to deliver or caused to be delivered a statement within the time prescribed in section 200(3) or furnishes an incorrect statement, in respect of tax deducted at source on or after 1.07.2012, he shall be liable to pay, by way of penalty a sum which shall not be less than Rs. 10,000/- but which may extend to Rs 1,00,000/-. However, the penalty shall not be levied if the person proves that after paying TDS with the fee and interest, if any, to the credit of Central Government, he had delivered such statement before the expiry of one year from the time prescribed for delivering the statement.
At the time of preparing statements of tax deducted, the deductor is required to:
- mandatorily quote his tax deduction and collection account number (TAN) in the statement;
- mandatorily quote his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government( including State Government). In case of Government deductors “PANNOTREQD" to be quoted in the e-TDS statement;
- mandatorily quote PAN of all deductees;
- furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be.
- furnish particular of amounts paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax u/s 197 by the assessing officer of the payee.
It may be noted that under the new TDS procedure, TAN of the deductor/ PAN of the deductee and receipt number of TDS statement filed by the deductor act as unique identifier for granting online credit of TDS to the deductee. Hence due care should be taken in filling these particulars. Due care should also be taken in indicating correct CIN/ BIN in TDS statements.
