From,

…………………………………..

…………………………………..

Dated ………………………..

To,

The Assessing Officer,

Circle/Ward …………………….

Dear Sir/Madam,

Subject : Reply of Your Notice u/s 201(1A) on behalf of a proprietary concern

PAN No ……………

My client ……………….. is in receipt of your Notice dated …………….. u/s 201 of the Income-tax Act for Assessment Year …………………… and has instructed me to submit as follows :

That my client being an individual, carrying on business as a proprietary concern was not liable to deduct tax at source in respect of payment of commission, rent and fees for professional or technical services.

So far the deduction of tax from salary is concerned the shortfall had arisen for the period from ……………. to …………… , basically, due to the fact that the relevant rules for valuation of perquisites were notified only on ……………….. but were made applicable w.e.f. ……………… However, my client has thereafter computed the tax deductible on salary (including value of perks) and the same was deposited in the month of November, 2021. The delay was not deliberate and cannot be attributed to my client and therefore, you are requested to not to charge any interest u/s 201(1A) .

In view of the above facts and circumstances you are requested to drop the proceedings u/s 201 as my client is not an assessee in default and therefore, the question of levy of interest u/s 201 (1A) does not arise.

Hope you would be satisfied with the above. Should you require any other information or detail, my client would be pleased to submit the same.

For further details, visit WWW.COMPANYMITRA.COM.”

Thanking you

Yours faithfully

…………………………