NOTICES FOR MISMATCH OF TDS RETURN VIS A VIS TAX AUDIT REPORT

Notice of TDS mismatch

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NOTICES FOR MISMATCH OF TDS RETURN VIS A VIS TAX AUDIT REPORT

The Income Tax Department (TDS) is bringing in new ways of verifying the correctness of TDS done and paid. For this, it is comparing the TDS returns with the information provided in Tax Audit Report in Form No. 3CD.

TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments.

Due to this new practice of the Income Tax Department (TDS) of comparing the TDS returns with Form No. 3CD, majority of the taxpayers are receiving notice regarding the same. Most of the notice received by the Assessees’ could be interpreted in a way that the TDS done is wrongly taken twice while comparing the TDS return with Form No. 3CD. Assesee has to provide with an explanation to such notices. A draft copy of reply is shown below-

To,

The Income Tax Officer

Addressee’s Address

 

Assessee :  Name of the Assessee

TAN           : TAN of the Assesee

A.Y.           : Assessment Year for which the notice is received

 

Subject: Recovery of TDS/TCD done but not deposited during the F.Y. 20__/__ i.e. A.Y. 20__/__

Reference: Your letter No. ________ Dated __/__/___

Respected sir,

With reference to the above captioned subject and reference and in continuation to   our personal hearing held earlier, we hereby beg to submit as under:

  1. That, the above referred notice mentioned that the total TDS done was Rs. ______/- (as per Department) whereas the Assessee has deposited Rs. ______/- only. (Actual TDS deposited by the Assesee).
  2. That actual TDS done by the Assesee was Rs. ______/- only and the same is duly deposited.
  3. That, it appears that the information of TDS done is wrongly considered twice while comparing the TDS data from TDS return Vis a Vis Tax Audit Report in Form No. 3CD. It may be kindly noted that, actual TDS amount as mentioned in Form No. 3CD is same as mentioned in the TDS return.
  4. That, for the ease of reference, a copy of Form No.3CD as well as Acknowledgment of TDS returns is enclosed herewith as Annexure I and II

In view of above, Assessee hereby humbly requests you to kindly drop the demand raised.

Thanking you

Yours faithfully

For (Name of the Assesee)

 

Assessee/ Counsel for Assesee

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