Income Tax department has issued Show cause notices to deductor for deposited of Interest on late deposit of TDS deducted in 7/2009.However there was a Bank strike on 06/08/2009 and 07/08/2009(due date to deposit tds deducted in 7/2009),due to strike deductor could not deposit in time.But Department has issued system generated notices without considering the Bank strike on due date to deposit TDS for the said period. So we have drafted a sample letter to reply the concerned ITO's .Further we have written a open letter to Chairman,CBDT to issue necessary directions to concerned offices to withdraw such system generated Notices.
Further all are requested to share this page with your friends and near & dears and raise your voice against it until department withdraw such notices.
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To
The Chairman
CBDT
Income Tax department
Subject: Show cause for default u/s 201(1) /206(c& in respect of Interest Demand on late deposit of TDS For the Month of 7/2009
Regarding the subject cited notice,it is brought to your kind notice that notices are being issued by Income tax department for Interest on Late deposit of TDS deducted for the Month of 7/2009, for which due date for deposit falls on 07/08/2009.On 06/08/2009 and 07/08/2009 there was Bank strike all over India. So it was not possible for deductor to Deposit the TDS deducted in7/2009 in time.
Income tax department has issued Notices for this default without considering bank strike, even Department official are reluctant to receive the replies given by deductor and pressing them to deposit the Interest without any reasons.
Therefore you are requested to look in to the matter and issue necessary directions to the concerned offices to withdraw unproductive/system generated notices to avoid loss of valuable time of both side.
Thanks & regards
Admin:Simpletaxindia.org
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Sample reply to Local Income Tax officer (ITO-TDS)
To
Income Tax Officer(TDS)
Income tax Department
…………………………………….
Memo No: Date:
Subject: Show cause notice for default u/s 201(1)/206 C(7) for Provisional Receipt number ………………………………. In r/o TAN ……………………………………..
Ref: Your office reference no …………..dated ……………………..
Regarding the late deposit of TDS in respect of Tax deducted in 7/2009,it is submitted that it was delayed due to Bank strike on 06/08/2009 and 07/08/2009.Therefore TDS deposited on very first day of this organization after strike was over ,as there were holidays on 08/08/2009 & 09/09/2009 being Saturday and Sunday .
Therefore it is requested that the interest demand on account of late deposit of tds may please be waived off under Force Majeure conditions. So your good self is requested to file the subject cited notices and oblige.
Thanks & regards
(Deductor Name)
TAN:....................................