| Question And Answer | |
|---|---|
| Subject: | PROSECUTION ON TDS |
| Category: | Income-Tax |
| Querist: | Prakash |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Prosecution, Prosecution TDS |
| Date: | September 9, 2023 |
Assessee is private limited co and has taken the loan from NBFC co. In the year 2021-22, how ever due to financial crises could not make repayment as scheduled . Interest is provided in books and TDS is also made , however TDS has not paid.
In the year Assesssee co did OTS with co by paying lumpsump payment where as per OTS entire interest was waived .
ASSESSEE CO REceived SHOWCAUSE NOTICE FOR PROSECUTION FOR NON PAYMENT OF TDS from FY 21-22..
Pl guide.
According to section 278AA of the Act, Prosecution is not to be initiated where there is a reasonable cause for failure in depositing TDS. The assessee will have to demonstrate a reasonable cause.
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