TDS credit mismatching limit restricted to Rs. 5000 from 1 lac for processing of returns of A.Y. 2011-12

0 comments Sunday, May 27, 2012
CBDT has revised its instructions relating to matching of TDS credit for processing of returns of A.Y. 2011-12. CBDT has withdrawn its earlier instruction No. 01/2012 issued on 2nd Feburary 2012.

Earlier in the withdrawn instruction it was instructed that TDS credit will be allowed if the mismatching in TDS doesnot exceed Rs. 1 lac. Now CBDT has revised this limit to Rs. 5000/- only.

Revised instructions are as follows:
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Section 40(a) not applicable to charitable trusts-no disallowance for non deduction of TDS


Mumbai ITAT has held in Mahatma Gandhi Seva Mandir Versus Deputy Director of Income-tax (E) 1(2), Mumbai that provisions of section 40(a) are not applicable while computing income of charitable trusts u/s 11 of Income Tax Act, 1961.

In this case disallowance u/s 40(a)(ia) was made by AO while computing income of the assessee-a charitable trust on the ground that TDS was not deducted on the certain payments made by trust and it was violation of section 40(a)(ia).

However the Tribunal held as under:

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Stamp Papers have no expiry period-valid even after 6 months of purchase

I have found the following judgement of Supreme Court on the issue of expiry period of stamp papers under Indian Stamp Act, 1899 as very useful one. In this case it has been held by Supreme Court that Stamp Papers do not have any expiry period under The Indian Stamp Act, hence it will be valid even after the purchase of 6  months.

Supreme Court in this case held as under:
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