Sir/Mam
I am having Fixed Deposits and Recurring Deposits in Post Office and I am not a senior citizen. The Post Master did not do the statutory 10% TDS on the interest earned on the FDs and RDs. Income Tax department has penalised me for not paying the advance tax. Due to the non-performance of the statutory obligation of deduction of 10% TDS I am being penalised by the IT department. Is there any possibility to request for condonation of the penalty for not paying the advance tax to the Income tax department. Please guide me in this regard.
sairam
While you are legally required to account for all interest income and pay advance tax regardless of TDS deductions, you can contest administrative penalties by submitting a representation or rectification request to the Assessing Officer detailing the post office’s failure to deduct TDS. However, mandatory statutory interest under Sections 234B and 234C is generally difficult to waive unless it fits strict CBDT relaxation criteria.