Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2014 THE ASSESSEE PAID COMMISSION THROUGHOUT THE YEAR TO VARIOUS PARTIES AND NOT DEDUCTED TDS IN FIRST 3 QUARTERS . HENCE NO TDS RETURNS WERE FILED FOR FIRST THREE QUARTERS.THE ASSESEE DEDUCTED TDS ON COMMISSION 31ST MARCH 2014 ON WHOLE AMOUNT I.E AMOUNT PAID DURING THE YEAR. IN ADDIDTION TO INTEREST UNDER SECTION 201(11A) WHAT OTHER CONSEQUENCES MAY HAPPEN?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 August 2014 you still need to file the returns for first three quarters and report the respective deductions therein

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Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2014 DESUCTINS WERE NOT MADE IN FIRST THREE QUARTERES. SO HOW CAN RETURN BE FILED, NIL RETURN CANNOT BE FILED

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Good point!

Here’s what happens and what you should do:

1. **TDS Deduction Delay**: Since TDS was not deducted in the first three quarters but deducted on the full amount on 31st March, technically tax was deductible earlier, so interest under **Section 201(1A)** applies for delay.

2. **Filing TDS Returns for Earlier Quarters**:
Even though no TDS was deducted earlier, **you cannot file NIL returns for those quarters** because TDS was actually deductible and payable in those periods.

3. **How to File Returns for Earlier Quarters?**
You need to file **TDS returns for those quarters showing the deducted TDS as of 31st March**, but declare the deductee details and payment made during those quarters.
In other words, you report the actual payment dates and deductee details as per original payment but show TDS deduction date as 31st March.

4. **Penalty & Other Consequences**:

* Apart from interest under 201(1A), penalty under **Section 271C** can be levied for failure to deduct TDS.
* Penalty under **Section 234E** for late filing of TDS return (₹200 per day delay) applies as well.
* The expenditure on commission may be disallowed if TDS is not deducted.

5. **Best Practice**:
File **correction statements** for the first three quarters showing the TDS deducted at the end of the year, along with interest and penalty payments to reduce scrutiny.

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**Summary**:

* Deduct TDS now on total commission paid.
* File TDS returns for all four quarters with correct details (correction statements for first 3).
* Pay interest and penalties.
* Document everything carefully.

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