The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has come down heavily on the I-T department for its failure to take cognisance of a tax deducted at source (TDS). The TDS was on professional income earned by a taxpayer and, consequently, the I-T department also raised a tax demand on her — along with penal interest.
A majority of taxpayers invariably incur TDS against their income — be it against salary, professional income or interest income. To carry on with this illustration, it is the employer organisation, the client and the bank which are respectively responsible for deducting tax at source and depositing it with the government.