i forgot to deduct tds for an amount under 194j in first quarter and i already made payment to him in first quarter only..
what can i do now to avoid interest and penalty..
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Missed tds deduction
Replies (3)
Treat it Creditor's account for the both the transactions. Deduct TDS for a whole thing. Pass entry at the end of the month with TDS due . Pay it in the subsequent month.
@ balthi
Deduct TDS of first quarter alongwith 2nd quarter payment and then pay TDS to Government. Interest and penalty will be as prescribed.
Deduct TDS of first quarter alongwith 2nd quarter payment and then pay TDS to Government. Interest and penalty will be as prescribed.
1. Options available to you are to deduct TDS from the next payment onwards along with TDS which should have actually been deducted in the first quarter.
2. Deduct TDS (including 1 st quarter) and remit the same. However, interest @ 1% for no deducting TDS will be levied u/s 201(1A) and penalty will be imposable u/s 271C equal to the amount of tax not deducted.
3. However, penalty u/s 271C will be imposable only by the Joint Commissioner. He may waive the penalty if reasonable cause is shown and the amount involved is less.
Please correct me if the above solution has an alternative view.
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