E- TDS return - Demand for less than Rs. 100/- to be ignored
As per the Central Action Plan for the year 2007-08 for electronic filing of TDS returns, processing is required to be done by the RCCs (Regional Computer Centres ). After initiation of bulk processing by RCCs , the TDS Assessing Officers are to assess the mis -match report, issue show cause notices and take follow-up action. Board has noticed that the total demand against defaults in the large number of cases is Rs.100 /- or less.
Since in such default/demand cases of Rs.100 /- or less, the cost of compliance by issue of show cause notices along with the justification of demand or default and follow-up action may be much more than Rs. 100/-, CBDT has decided to allow the Assessing Officers to ignore such cases and drop the demand where the demand/default is upto a level of Rs. 100/- or less. However, the DDOs in such cases may be warned to be careful in future so as to ensure that they do not become habitual in short deduction of tax.
These instructions shall apply to all TCS / TDS cases under all direct tax enactments. These instructions will come into force immediately.
CBDT has done some real costing. Maybe they can amend the law to provide for a mandatory presumptive fine of Rs. 5000/- whenever the TDS is short by Rs. 500/- or less so that DDOs are more careful.
CBDT Instruction No 11/2007, Dated: December 18, 2007