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TDS / TCS 429 views 5 replies

If a person who has not deducted TDS on Payment of an expenditure on which TDS should be deducted or if TDS has been deducted but not deposited timely then what will  be consequences.

 

 

Thanks in Advance 

Replies (5)

1) if the TDS so deducted was paid( with interest) before the filing of his return for that year, and TDS returns submitted before filing of his incometax return, then no issue

2) if the TDS not deducted or TDS not paid upto the time return filing, then expenses would be disallowed. apart from it, TDS department will also exercise their power for recover of TDS payable with interest and penalty. 

As per 201 , the employer/ pricipal officer will be treated as assessee-in-default iro such tax

also penalty u/s 221 is attracted

Int u/s 201(1A) for late deposit of TDS

Penalty u/s 271C

Prosecution u/s 276B

Many of des orders, demands for penalty require previous approvals  from JCIT, CIT etc

you means there will be double taxation and what will be the amount of penalty &rate of interest.

It is not exactly double taxation.

 

Penalty =  sum equal to tax which he failed to deduct

Int =  1 % for every month or part of a month on the amount of TDS deductible for the period b/w de date wen TDS was deductibel and TDS was actually deposited

agreee with U.s.sharma


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