PENALTY

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17 January 2010 WHAT IS PENALTY FOR NON PAYMENT OF TDS IF SO COLLECTED OR NOT DEDUCTED?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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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

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Barun Kumar Ghosh

Barun Kumar Ghosh (Expert)
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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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