Well, I filed my brother’s returns for the assesment year 2005-06 on 31.10.2007 without attaching his Form-16. When I consulted with one of my friends, she said that The Form-16 can be submitted after the AO sends the demand notice. The reason for late filing was due to the ignorance of my brother.The details (as per the return filed) are:
Total income was Rs 1,73,935
Tax Payable -Rs. 9984
TDS- Rs.16,153
Refund due-Rs6169
On 18th of July 2008 we received the demand notice from the AO, charging Interest on the above tax amount and pay Rs.14358(Tax-Rs.9968, Int 234A-1500, 234B 2700, 234C-370). How should I proceed?Priyamvatha, Chennai
Form 16 is a certificate of deduction of tax at source from Salary. An assessee can apply for rectification of order passed u/s 143(1) by stating that the Form 16 was not attached with the return and now you are attaching the same , so that credit for tax is given. The provision for such rectification is provided in section 155(14) as under
(14) Where in the assessment for any previous year or in any intimation or deemed intimation under sub-section (1) of section 143 for any previous year, credit for tax deducted or collected in accordance with the provisions of section 199 or, as the case may be, section 206C has not been given on the ground that the certificate furnished under section 203 or section 206C was not filed with the return and subsequently such certificate is produced before the Assessing Officer within two years from the end of the assessment year in which such income is assessable, the Assessing Officer shall amend the order of assessment or any intimation or deemed intimation under sub-section (1) of section 143, as the case may be, and the provisions of section 154 shall, so far as may be, apply thereto :
Provided that nothing contained in this sub-section shall apply unless the income from which the tax has been deducted or income on which the tax has been collected] has been disclosed in the return of income filed by the assessee for the relevant assessment year.
From aforesaid provision , it is clear that in case an assessee does not attache the Form 16 or TDS or TCS with the return and an order u/s 143(1) is passed raising the demand , in that case rectification petition u/s 154 can be made to the assessing officer within two years from the end of assessment year.
Your specific case
In your specific case , it is seen that time for producing the TDS certificate (Form 16 ) has elapsed on 31/3/2008 as the assessment year is question is 2004-05. So what to do in this case .
Do not worry. Since tax has already been deducted , there is no question of again paying the same. Income Tax Act provides solution for such problems. Section 119(2)(b) of the I T Act gives power to Commissioner of Income Tax to condone such delay in filing the Return , or TDS certificate or claiming any deduction or exemption.
So , I suggest you write a letter on plain paper to the Commissioner of Income Tax under which the A.O of your brother works and in subject line write” Application u/s 119(2)(b) of the I T Act” and state the problem. Also enclose the photocopy of the certificate .When you make an application to CIT , give a copy to A.O for intimation.
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