Query regarding the settlement of short TDS amount incurred due to failure to deduct or pay tax - Professionals - Taxation - TIK Share
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Query regarding the settlement of short TDS amount incurred due to failure to deduct or pay tax


Rahul Rai

2014-02-26

Found this query on facebook. Even i am intrested to get answer for this.

As it was given under section 201 of the Income tax Act, 1961 that any person, including the principal officer of a company, `who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident—


(i) has furnished his return of income under section 139;
(ii) has taken into account such sum for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income, 

and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed [i.e. Form 26A Detail of form]

Also, it was Inserted by the Finance Act, 2012, w.e.f. 1-7-2012 that in case any person, including the principal officer of a company fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident but is not deemed to be an assessee in default and the interest shall be payable from the date on which such tax was deductible to the date of furnishing of return of income by such resident.

As per the above provision, can any one help me to find the process to adjust short TDS amount reflecting in TDS return already filed by us. Also please suggest how CPC will consider aforesaid Form 26A if furnished by vendor after getting certified by their accountant.