From 1st July inaccurate TDS returns may attract Penalty up to Rs. One Lakh

Attempting to raise revenue, the government has targeted Tax Deducted at Source (TDS) and proposed penal provisions for inaccurate details and ensuring filing of corrective returns from July 1.

“From July 1, government may impose penalty of Rs 10,000 and Rs 1,00,000 for inaccurate TDS returns and also for corrective filings after proposed amendments in the Finance Bill is cleared,” Income tax joint commissioner (TDS) A K Dey told media.

Presently, there is no penal provisions for mistakes in both first and corrective TDS filings if wrong details had been provided. Penal provisions have already been introduced for late filing of returns.

TDS accounts for close to 40 per cent of the total direct taxes.

The tax department believes quantum of wrong inputs are large and most of them are not cases of unwilling mistakes.

TDS returns are filed quarterly and incorrect PAN number, amount deducted and details are among the wrong inputs.

Dey who was at Bharat Chamber of Commerce at an interactive session on TDS said forms 15G and 15H were not necessary if the total interest earned was below Rs 10,000. But several banks were insisting on the same despite the annual interest being below the threshold limit.

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Category : Income Tax (25326)
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Tags : TDS (906) TDS Return (25)

0 responses to “Inaccurate TDS returns may attract Penalty up to Rs. 1 Lakh”

  1. naresh kumar says:

    sir,

    what is new amendment in tds 2012-13.

    rgds
    Naresh

  2. Dr. Satya Prakash says:

    Prposed amndment is needed with a rider for genuine mistakes. Frther, Deapetment shall also be fined for doing mistas in genuine TDS return filed by the Tax Payer.

  3. Dr. Satya Prakash says:

    The proposed amendment is needed but there shall be rider for genuine mistakes.

    Further, Income Tax Deapertment shall also be fined for doing mistakes in correect TDS filed by the Tax payer.

  4. Pranab Banerjee says:

    Sir, the last amended Budget 2012 in Tax Liability regarding the Bank Interest below Rs. 10,000/- is not under Tax, question that whether any one can get the Interest from the FD ?, the 24G is asking by the bank only for Fixed Deposit and submitting the same by the Customer for Fixed Deposit, Fixed Deposit Interest  where below 10,000/- is Taxable or Not.

    • CA Sandeep Kanoi says:

      Fixed Deposit Interest is taxable. Bank do not deduct TDS on interest on fixed deposit if the same do not exceed 10thousand in a year. Only saving bank interest is exempt from A.Y. 2013-14 up to Rs. 10000

  5. V SHEKAR REDDY says:

    This is to highlight our experienced difficulties faced after e-filing the TDS Returns.
    One such incident is about TDS on salaries.
    We have filed TDS returns for Salaries for the Accounting year 2009-10 in time, correctly. However, many of the employees didn’t find TDS credit as per the intimations U/s 143(1) that were received from the CPC, Bangalore.
    We didn’t find any mistake in the TDS Returns that were filed, after checking the hard copies for such returns available with us.
    We have once again filed the same returns.
    Is this problem due to a mistake in preparing the TDS return or in uploading the date by the facilitation centre or at the end of I T Department in retrieving and processing the data.
    Request you to advise us to locate the possible areas of mistakes that are committed by the return preparers.
    Regards

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