Surcharge on TDS, Income Tax

[gvenugopal g]

Dear Experts,

Please refer CBDT Circular No.8/2020 dated 13th April 2020 regarding enhenced surcharge on TDS/TCS.

In the financial year 2019-20 we didn't deduct surcharge for the payments exceeds ₹ 50 Lakh Kindly explain and clarify whether shortfall(surcharge @15%, 25% or 37%) will be be paid with interest if even three Qly TDS returns (APR' - DEC'19) filed within due dates?

Thanks & regards: G Venugopal

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

The circular clearly indicates that such transaction has been completed and entire payment has been made to the deductee/payee on or before 5th July, 2019 and there is no subsequent transaction between the deductor/collector and the deductee/payee in the financial year 2019-20 from which the shortfall of tax could have been deducted/collected by the deductor/collector the assessee will not be considered as assessee-in-default. However the shortfall is to be recovered.

For the II quarter and III quarter you are required to pay the shortfall along with interest.

[gvenugopal g]

Dear Sir,

Thank you very much for your valued explanation.

The enhenced surcharge rates (10,15,25 & 37 percent) are applicable to all payments exceeding ₹ 50 Lakh to deductee/payee (individual/Huf / firm/ aop/ company)?

My doubt is the above surcharg rates are applicable to Individual/HUF for computing tax for the FY 2019-20. So the recent Circular No.8 is applicable to payments above ₹ 50 lakh to deductee/payee whose status is residential individual/huf?

I would be appreciated if you could brief the above views.