non deposit of tds amount

Consequences of failure to deduct tax at source or furnish returns in time

1. Assessee in default (Section 191)

Assessee shall be considered as assessee in default if the person responsible for deduction of tax in he has not deducted tds or not paid tds so deducted

2. Interest

Interest at 1% for every month or part of a month from the date on which tax was deductible to date on which such tax is actually paid.

3. Penalty

Various penalties will be levied u/s 271c, 272A(2), 220

4. Prosecution

section 276B: failure to pay tds punishable with rigorous imprisonment for min: 3 months, max : 7 years

5. Expenditure is disallowed