IMPLICATIONS OF NON DEDUCTION OF TDS

This discussion explores the implications of failing to deduct and pay TDS on rent for an entire financial year. It highlights that if TDS is deducted but not paid to the government, 30% of the amount may be disallowed as per Section 40(a)(i) of the Income Tax Act. This disallowance will need to be reported in the ITR under Schedule OI and the full amount must be shown in the tax audit under section 40A(ia).