PENALTY
This query is : Resolved
Guest
Guest
(Querist)
17 January 2010
WHAT IS PENALTY FOR NON PAYMENT OF TDS IF SO COLLECTED OR NOT DEDUCTED?
CMA Ramesh Krishnan
(Expert)
17 January 2010
If a person fails to deduct the whole or any part of the tax at source. or after deduction, fails to pay the govt with in the prescribed time ,he shall be liable to action in accordance with the provisons of Sec.201(1A)
If deducted not paid to goverment a/c-Such person shall liable 1% simple interest for every month or part of the month from due date to the date of payment
If Non deduction- penalty a sum equal to the amount of tax not deducted by him
If deducted not paid to goverment a/c-Such person shall liable 1% simple interest for every month or part of the month from due date to the date of payment
If Non deduction- penalty a sum equal to the amount of tax not deducted by him
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Barun Kumar Ghosh
(Expert)
17 January 2010
Even for failure to deposit tax after deduction, the person responsible for deducting tax at source will be deemed to be an assessee in default under section 201. Under section 221 the AO can levy penalty for a sum not exceeding the amount of tax not deposited after deduction. However, opportunity is to be given by the AO to the defaulter of being heard before levy of such penalty.
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