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Quiz for the week (23 Jun 2025) :

Poly Co Ltd is engaged in manufacturing activity. It paid job work charges of Rs.30 lakhs during the previous year 2021-22 in a unit which was closed in the previous year 2023-24. The assessee omitted to deduct tax at source. The actual TDS liability was Rs.50,000 for the said expenditure. In April, 2025 the Assessing Officer initiated proceedings for the non-deduction of tax at source and passed an order for remittance of TDS amount and interest under section 201(1A). In March, 2025, he initiated proceedings for levy of penalty under section 271C. The tax counsel of the assessee says that levy of tax and interest is not correct and only penalty could be levied. Decide whether the amount of tax deductible at source plus interest under section 201(1A) and penalty under section 271C , are leviable?

Share your thoughts on the above on or before 30th June, 2025

Email your reply at quiz.taxpub@gmail.com

Answers :