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Non deposit of TDS deducted - Penalty ?

10 July 2018

If any person Deducted tax at source but failed to deposit in government's account, is there any penalty in Income Tax Act.

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (127431 Points)
Replied 10 July 2018

Yes... Interest and Penalty is Levied.

1 Like

Kalpesh (Chartered Accountant) (349 Points)
Replied 10 July 2018

Yes Interest @ 1.5% pm or part thereof.

1 Like

Kavita Modi (CA Job) (232 Points)
Replied 10 July 2018

agreed with Mr raja... interest @ 1.5% per month from the date of deduction to the date of deposit and late filing fee @ RS. 200/ day from date of section to the date of payment but not more than TDs amount which was not deposited. further if TDs is not deposited within one year of the due date then penalty prosecution will also be taken.

1 Like

Vinod Babu (24191 Points)
Replied 10 July 2018

Yes agree with all the above views.
Penalty and interest is payable.

1 Like

Sachin Bhalke (8 Points)
Replied 10 July 2018

could u please explain the section in which these conditions have mentioned such 1.5 % interest per month and rs. 200 per till deposit in the govt.'s account...