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Tds deposit not full amount

Ramanuj (Accountant.) (834 Points)

04 June 2012

A deductor has deduct tds @ 5% instead of 10% and submitted etds return 26q accordingly, for 1st quarter.Now if he deduct balance tds amount in IIIrd quarter @ 5% from deductor Tds delay deposit with interest or not & how will be adjusted in etds return ? Thanks in advance

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4 Replies

MAHESH GARG (AUDIT EXECUTIVE) (334 Points)
Replied 04 June 2012

Consequences for failure to deduct or pay TDS is governed by section 201 of income tax act

In your case interest will be payable at 1% for every month or part of month on outstanding TDS amount from original due date of deduction to the date of actual deduction

MAHESH GARG (AUDIT EXECUTIVE) (334 Points)
Replied 04 June 2012

e tds return will be prepared as generally. just mention the period to which it relates..

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 04 June 2012

I think you have to rectify the return wherein late deduction amount needs to be mentioned and payment details of the IIIrd qtr to be shown. Of course, interest liability wll creep up.

CA Saurabh Khetan (ca) (48 Points)
Replied 05 June 2012

you have discharge the liability with the interest @ 1% for the number of months and part there of which is under delay and the same time you have to revise the return for the same quarter too.