Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2012 If TDS deducted U/s 194C. but not paid then what are the consequances for the same. Means calculation of amount of interest U/s 234.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 May 2012 interest to be paid @1.5% per month or part thereof till the amount is deposited.

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2012 Thank you. can you tell me the saction under which such interest is leviable???

and tell me the situation under which interest U/s 234A, B and C is leviable.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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27 July 2025 Sure! Here's a clear explanation about TDS, interest under section 234, and the differences between 234A, 234B, and 234C:

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### 1. **Consequences if TDS deducted under Section 194C but not deposited**

* If you deduct TDS but **fail to deposit it with the government on time**, you are liable to pay **interest** on the delayed payment.
* The interest is charged under **Section 201(1A)** of the Income Tax Act, **not under Section 234**.
* The interest rate is **1.5% per month or part of a month** from the date on which TDS was deducted to the date it is actually paid to the government.

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### 2. **Which section levies interest on late TDS payment?**

* **Section 201(1A)** — Interest for delay in deposit of TDS.
* Rate: 1.5% per month or part thereof till TDS is deposited.

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### 3. **Situations under which interest under Sections 234A, 234B, and 234C are levied**

| Section | Purpose | When Applicable | Interest Rate |
| -------- | -------------------------------------------------- | ---------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- |
| **234A** | Interest for delay in filing income tax return | When you file your income tax return after the due date. | 1% per month or part of month on tax payable from due date till filing date. |
| **234B** | Interest for default in payment of advance tax | When you fail to pay advance tax or pay less than 90% of your total tax liability. | 1% per month or part of month on the amount of unpaid advance tax, from April 1 of assessment year to date of payment. |
| **234C** | Interest for deferment of advance tax installments | When you fail to pay advance tax installments on or before specified due dates. | 1% per month for 3 months on the shortfall amount of each installment. |

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### Summary:

* **TDS deducted but not deposited** → Interest under **Section 201(1A)** at 1.5% p.m.
* **Late filing of return** → Interest under **Section 234A**
* **Failure to pay/short payment of advance tax** → Interest under **Section 234B**
* **Delay in paying advance tax installments** → Interest under **Section 234C**

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If you want, I can help you with example calculations or official references too! Would that be useful?

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