Non deposition of TDS

There is not any penalty but at the time of assesment Income tax officer may disallow the expenditure.

TDS to be deposited with 1% p.m as Interest for not crediting into the Govt A/c. And also, if TDS Quarterly return is not filed by the client, then Rs. 100 per day should be paid as a penalty from the due date of filing of Quarterly returns.

Dear Sankalp,

If the person responsible for deducting or depositing the tax at source, does not pay or deposit the TDS then Interest u/s.201(1A) @ 12% p.a. from the date on which the tax was deductible to the date on which such tax is actually paid will be levied on the amount of such tax.

If your client has not deposited T.D.S. till now, then say him to deposit T.D.S. of March as soon as possible (On or before due date of filing of return of income

 ). So he may claim expenditure this A.Y.

For rest, he may deposit T.D.S. anytime in this year (but remember the interest will go on increasing) and he will get deductions for that payments in the next A.Y.

Abhishek Pandey.

i think rate of interest is 1.5% if tax is deducted and not deposited.

No its 1 %.