Consequences of short deduction of TDS

What are the consequenses of short deduction of TDS.

Suppose certificate for deuction of tax  (u/s 197) is received from 1/10/2007, but TDS deducted at lesser rate even before the receipt of such certificate.

What will be the remedy

Replies (9)
What are the consequences of short deduction of TDS ? What is the financial impact of the above ? Whether the said expenses gets disallowed ?
expenses are diallowed only for non remittance or non dedcution of TDS but thereis no provision for disallowance because of short deduction.
in case of short deduction of TDS it's impliedly means that to that expenses will be disallowed because of in the Income Tax Act TDS rates give specifically and provision related to that rates so short deduction attracted to disallowablilty of expenses related
Good Day!! As per my understanding the Lower TDS is to be made only after the date of the lower TDS certificate received by the Deductor. if short deduction is made then, proportionate expense gets disallowed. Illustration: TDS u/s. 194C @ 2.06% (no SC) for Rs. 10000 = Rs. 206 has to be deducted but deducted at 1.03% Rs. 103 then proportionately i.e (106/206)*100=50% of the expenditure will be disallowed, and Interest will be levied on the Short Deduction under relevant provision. regards Sunil Keep Smiling
short deduction has same impact as if no deduction is made thnx
There is no clarificatiion in case of short deduction or deduction under wrong dedduction from CBDT. If there is short deduction claim of expenditure may be allowed fully. only penal interest will attract. liberal view needs to be taken in such cases.

One of my client is not deducting tds on purchase of printed stickers for packing on their specification. pls tell me whether tds is to be deducted or not

partly expenses will be disallowed.

In case of short deduction amount is payable what rate of interest is applicable to it,from which date to what date  and iin case of Late payment will interest be applicable to it

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