29 August 2012
HI, coule any one answer these below questions on shorter dedution of tds 1)While deducting TDS we have deduted the tax at lower rate than the prescribed. Later we found out we have deucted lesser percentage. the deduction happend in the first quarter and returns also filed. 2)here i want to know what is the consequesces a)can we deposit the differential amount in this quarter. b)does we need to pay any intere at what percent and does it attracts any penalty. thanks
29 August 2012
For any short or excess deduction of TDS, same can be adjusted/paid during the year.
In your case, the differential amount of TDS for the particular quarter due to short deduction can be paid in subsequent quarters along with interest as under:
For late deduction of Tax deduction at source-(period date from tax deductible to date of actual deduction )(rate 1 % per month or part thereof) For late deposit of TDS after deduction (period :date from tax deducted and date of actual deposit)(rate 1.5 % per month or part thereof)
No penalty is applicable if u rectify the mistakes during the year.
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