TaxTMI 
TaxTMI 
SIR, WE HAVE DEDUCTED TDS AND PAID WITH INTEREST AT THE TIME OF FILING OF RETURNS FOR THE AY 12-13. NOW THE COMMISSIONER ISSUED SHOWCASE NOTICE FOR PROSECUTION OR PAYING PENALTY OF 5% PER MONTH. IF WE ARE NOT PAYING PENALTY AND IF HE PROSECUTES US, CAN WE WIN THIS CASE. PLEASE ADVISE US.
276B PROSECUTION
VENKATESWARA RAO RAVURI
Show Cause Notice for TDS Late Payment: Potential 5% Monthly Penalty and Prosecution Risk for 2012-13. A query was raised regarding a show cause notice for prosecution or a penalty of 5% per month issued by the Commissioner for late payment of TDS for the assessment year 2012-13. The inquirer sought advice on whether they could win the case if prosecuted. The response highlighted a CBDT instruction stating that prosecution should not be proposed if the amount and period of default are not substantial, referencing a circular from 1980. However, it was noted that legal precedents, including a Supreme Court ruling, may not favor the inquirer. (AI Summary)