non deduction of tds
(Guest)
what are the all possible consequences in case of non deduction of TDS on salary? and one thing more is it a allowable expense?
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14477 Points)
Replied 11 June 2010
CONSEQUENCES OF DEFAULT
Failure to deduct or remit TDS /TCS(full or part)
• Interest at the rates in force (12% p.a.) from the date on which tax was deductible/collectible to the date of payment to Government Account is chargeable.
• Penalty equal to the tax that was failed to be deducted/collected or remitted is leviable.
In case of failure to remit the tax deducted/collected, rigorous imprisonment ranging from 3 months to 7 years and fine can be levied.
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