Direct Tax Instruction No. 11 dated 18 December 2007
Processing of e-TDS returns - Parameters The CBDT laid down the parameters for processing of e-TDS returns, wherein instructions were issued to ignore default cases where the demand was only up to Rs. 100/-.
All Chief Commissioners of Income Tax
Directors General of Income Tax.
Parameters for processing of e-TDS returns - Default cases involving demand upto an amount of Rs. 100 to be ignored - Issuance of instructions - reg.
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. 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. It is seen that the total demand against defaults in the large number of cases is Rs. 100/- or less.
2. As per the present procedure and in accordance with the provisions of the Income Tax Act, where the default on account of short deduction or short payment is less than Rs.5/- for each deductee, the demand is rounded off to zero.
3. 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/-, it has been 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.
4. These instructions shall apply to all TCS/TDS cases under all direct tax enactments. These instructions will come into force immediately.
Sd/- V.N. Gaba Under Secretary (Budget)
Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi