Suppose a person is crediting commission to the account of broker everymonth and he is also liable to deduct tds, but he dosent deduct the tds every mont but instead in the TDS return for Quarter ending march he shows a single TDS entry for the whole year , deposites the TDS for the whole year in the return qtr ending march? what is are the consequences of above situation i.e, fines, penealty, liability of the deducter.
Thank You
As you mention that there is liability to deduct the TDS. So interest rate will be charged @ 1% per month or a part of a month from the date on which was to deducted to the date of deduction. and interest @ 1.5% per month or a part of a month will be charged from the date of deduction to date of deposit.
Please use TDS calculator for determine your TDS liability
/share_files/latest-tds-calculator-updated--65128.asp#.VK14ryuUdNM
Hi Sahil,
As you mention earlier that the commission is being credited every month. so You may calculate the expected commission amount in a financial year. If in your case it is exceeding 5000 then you are liable to deduct the TDS.
Further if you have not dedcuted the TDS on crediting the commission whether within threshold limit, then you have to pay the interest for non deduction of TDS.
Yes you have to revise the TDS return in which period these entries is falling.
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