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viswajit06

viswajit06 (Querist)
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20 September 2013 penal provision for failure to deduct and pay TDS u/s 194c

Ajay Mishra

Ajay Mishra (Expert)
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20 September 2013

You will pay Interest @ 1% pm.

Go to the following link:

https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Instructions/CBDTLaws/HTMLFiles/chp17_49.htm

Ganeshbabu K

Ganeshbabu K (Expert)
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20 September 2013 expenditure will be disallowed in computing total taxable income

Sanket

Sanket (Expert)
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20 September 2013 Interest charge U/S 201(A):
Under this the person responsible for non deduction of TDS is treated as “assessee in default”. Under this section the responsible person is liable for paying simple interest at the rate of 1 per cent for the whole tenure when TDS was not deducted.

This interest should be submitted before the submission of the quarterly statement in each quarter. There is no way or provision under which this interest amount can be waived.

It is mandatory and that the responsible person has to deposit the same as penalty.

Rule 119 A is used for Interest is calculation process. Following rules are used for calculation of interest to be paid by the person who failed to deduct TDS.

1. Interest will be calculated for the full month irrespective of the fact that whether it has to be calculated for every month or for only part of the month.

2. The taxable amount with reference to which interest is calculated will always be rounded off to nearest multiple of 100. Any further fractions will be ignored.

Good Day :)

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