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Late deduction of TDS

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This query is : Resolved

prasad (Querist)
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25 February 2010 My client, a partnership firm,has not deducted tax on rent since it started its business on 1st july, 2009.Rent till December has been paid.
Now can it deduct the tax since July and deposit it? What would be the implications?Is interest payable? Are they liable for penal action? What about the TDS returns ralating to Sept & Dec quarter? Since no TDS was actually deducted no question of return. Pls tell me the appropriate way out. Thanks

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 February 2010 Since you are not deducted up to december, you can deduct now and pay with interest 1% per month or part of month. and file tds return in 4th quarter. if now also you are not deduct up to march then penalty will be the non deducted amount and the rent expenses also disallowed in income tax

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