11-15-2010, 08:51 PM
Sir, ap ka reply ki logic kuch samag ma na ayi. If individuals income is BTL then why should the company deduct tax. Agar company tax deduct kar rahi ha tu individuals must have taxable income. i quote section 161 (1B)
"Where at the time of recovery of tax under sub-section (1) it is
established that the tax that was to be deducted from the payment made to a
person or collected from a person has meanwhile been paid by that person, no
recovery shall be made from the person who had failed to collect or deduct the
tax but the said person shall be liable to pay 7[default surcharge] at the rate of
eighteen percent per annum from the date he failed to collect or deduct the tax to
the date the tax was paid."
Since individuals will file nill return company cannot be held liable for non deduction of tax.
"Where at the time of recovery of tax under sub-section (1) it is
established that the tax that was to be deducted from the payment made to a
person or collected from a person has meanwhile been paid by that person, no
recovery shall be made from the person who had failed to collect or deduct the
tax but the said person shall be liable to pay 7[default surcharge] at the rate of
eighteen percent per annum from the date he failed to collect or deduct the tax to
the date the tax was paid."
Since individuals will file nill return company cannot be held liable for non deduction of tax.
