Wednesday, April 4, 2012

e-TDS:- Relaxation in Deduction of TDS or Non-Deduction of TDS

Friends,

Deductor is not "Default in Assessee" with some conditions
   
                 If a deductor do not deduct TDS or Short dedcut TDS, he is called "Assessee in Default" as per section 201(1).  Such type of dedcutor is responsible to pay interest on TDS amount.  


            In this budget a good change has been done in the interest of businessman.  The implementation of this change is effected from 1 July, 2012.  After change, a deductor who is responsible to deduct income tax do not deduct TDS or deduct TDS in short will not be treated as "Assessee in Default" if he proof the following conditions. 


  1. The person who has been paid income,  has included the said income  in his return and he has also submitted his income tax return. 
  2. The person who has received income has deposited income tax which is calculated on his income after including the said income. 
  3. Deductor has received C. A. certificate relating to above two points. 

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