TRACES - Short Deduction defaults in 24Q FY 2012-13 TDS Statements

CPC (TDS) communication regarding Short Deduction defaults in 24Q FY 2012-13 TDS Statements

Communication 43 dated 26th April, 2014

CPC (TDS) has observed from its records that the 24Q TDS statements submitted by you for Financial Year 2012 -13, have Defaults on account of Short Deduction.

This may be noted that Annexure II of Q4 TDS statement must be completed with correct and complete details to avoid above Default. It is further requested to refer to Circular 8 dated October 10, 2013 in the context of Tax Deduction at Source on Salary Income for Computation of Income and Manner of deduction of tax at source.

Actions to be taken:

·         Annexure II of the Q4 TDS Statement must be completed with correct details.

·         Deductee Type should be correctly raised for Woman/ Man/ Senior Citizen/ Super Senior Citizen deductees.

·         Correct flags (A or B) must be raised for no deduction/ lower deduction/ higher deduction, as appropriate.

·         All deductions and exemptions must be correctly reported in the Annexure II.

·         Please provide information for all employees who work or have worked for any period of time during the financial year. TDS Certificates will also not be generated for deductees, for whom Annexure II has not been completed.

·         For employees who are employed with more than one employer/ different branch offices, during the financial year, employee should declare previous salary and TDS details, if any, with the current employer and the same should be considered by the current employer while deducting TDS on salary.

Consequences of failure to Deduct or Pay:

As per provisions of Section 201(1) of the Act,

·         Where any person, including the principal officer of a company,

• who is required to deduct any sum in accordance with the provisions of this Act; or

• referred to in sub-section (1A) of section 192, being an employer,
  does not deduct, or does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of such tax.

·         Under Section 220(2), if the amount specified in any notice of demand under section 156 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month.

It is, therefore, requested to correct the records reported in your TDS statements, pay the outstanding demand and submit Correction Statement at the earliest. Please ignore, if the corrections have already been submitted.

Source: TRACES.