Tds deducted but not deposited

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Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2012 Hi,

My client has deducted TDS for the year 2011-12 from Individual but not deposited till date due to financial crisis and his position till 31st August`12 will be the same.

Due to last date of Individual Return on 31st July`12,all individuals are demanding their Form 16A but due to non deposit of TDS amount we are unable to issue the Form.

My queries is that:

1> Can they take any legal against of my client.

2>What will be any complication.

3>Can all individual file their return before 31st July`12 if my client provide their deducted amount.

You are requested to solve the issue.

Amol S Joglekar

Amol S Joglekar (Expert)

27 July 2012 ans 1: yes. they can sue. Not only that, Govt can also sue. ans2: To stretch the imagination to other extreme,rigourous punishment may be invoked. Ans3: The deductees have to do away with this TDS as they will not get credit for the Govt.

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)

27 July 2012 Dear Friend, The deduction of TDS and not deposit the same within due date attracts interest also @1.5% as well as penalty upto the amount of tax not deposited. You can also face punishment of confinment under amended Income Tax Act. Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2012 Thanks for the reply.

On the request to all individual they are ready to file their return in late and the co. is ready to bear the interest if any.

In these circumstances what would be the complication.