Penalty of Rs 200 per day should be changed according to default in tax-deducted TAN number be merged with PAN number

Kashmir Times. Dated: 8/13/2019 10:47:53 AM

Dear Editor,
Income Tax Department is sending repeated SMSs on mobile-numbers of all those registered with the Department with TAN numbers for deducting tax at source cautioning about imposition of penalty of rupees 200 per day for not filing quarterly TDS statements. But such filing of TDS statements is compulsory only for those having deducted tax-at-source in some particular quarter. Such SMSs unnecessarily create panic amongst those who are not to file TDS statements because of not having deducted tax-at-source in some particular quarter. Income Tax Department should modify SMS to add that such TDS statements are to be filed by only those TAN-number holders who might have deducted tax-at-source in some particular quarter.
Moreover irrational penalty of rupees 200 per day is advantageous for those where TDS amount is much higher and interest for delayed deposit of TDS may exceed rupees 200 per day. But on the contrary, such amount of rupees 200 per day is highly excessive and reasonable for those having defaulted for deposit of some small amount of tax-deducted. Penalty of rupees 200 per day should be changed to say 3-percent per month of delayed deposit of TDS amount.
Best is to merge TAN with PAN (Permanent account Number) where PAN holders may be filing quarterly TDS statement for deposit of Tax-Deposited-at-Source by PAN holders. Filing of such quarterly TDS statements (if applicable for some quarter) may be a part of Income Tax Return and audit-reports if applicable.
—Subhash Chandra Agrawal,
1775 Kucha Lattushah
Dariba, Chandni Chowk Delhi.

 

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