TDS demand from 2012
The demands stems from non payment of tds on Professional fees despite deduction thereof from my Fees An amount of Rs 203625 worth of tds has been deducted and not paid by the deductor As you are aware Section 205 precludes recovery of tax from taxpayer if the tax has been deducted from her income by the deductor A tax payer cannot be forced to pay tax if the tax has been deducted from her income. Tax payuer is obligated to pay tax only on the income wherein tds provisions are not applicable.The cbdt has provided directions on the matter that in circumstances where TDS is deducted but not paid to the Government, then the AO cannot levy tax on payees or issue demand order on them The cbdt has issued Office Memorandum dated 11032016 by which it has drawn attention to its earlier letter dated 01062015 The cbdt has accordingly reiterated the instructions contained in its letter dated 01062015 and directed the assessing officers not to enforce demands created on account of mismatch of credit due to nonpayment of tds amount to the credit of the Government by the deductor Accordingly i request you to kindly rectify the intimation so issued and cancel the demand raised herewith