Tax Print: Feb. 2010 Newsletter

Notices for Recovery of TDS U/S 201 (1)

The Income Tax Department has recently started processing the TDS Returns filed for the Financial Year 2007-08 and issuing notices u/s 201 (1) of the Incometax Act,1961 Each notice gives reference of financial year, quarter , Form No and RRR No. The Notices are being issued in cases where any TDS is found recoverable from the Tax Deductor on the basis of the TDS Returns filed by the Tax Deductors. The three broad heads under which TDS is found recoverable are as under:

1. Section wise amount deducted but not paid: Under this head the total amount of challans which have not matched online are mentioned section wise.

2. Total Interest on late payment till date
Under this head the total amount of interest payable is worked out based on the date of payment of the challans forming part of the TDS Return.

3. Section wise short Deduction
Under this category each and every transaction is matched with the rate mentioned against the said transaction any the total tax that is short deducted is mentioned section wise.