Penalty code (tds) urgent

We have not deducted TDS for payment of 5 bills in 15-16. Now we have deducted the same (in 16-17) from current bill of the third party and paying it to IT, including Intt. @ 1% u/s 201(1A). I have 2 questions ...

1. Do we need to pay Late filing fee @ 200 per day for that period ? We have filed TDS return (2015-16) without including those 5 bills payments ?

2. If Late filing fee @ 200 per day is applicable, should it be paid as "Penalty" or "Others" (SBI epayment) and under which section should I mention it (11C or N11C)

Thanking you

Shantanu Mridha

Replies (7)

This is too much require to understand that wheather u have deducted the tds onthat period but not deposited or deposited but not filling the return...? OR u didnot deduct the TDS amnt from the party on that period ...........? please clear it.

We are an an organisation. We have not deducted TDS in 15-16 which we should have (third party payment).

Now we are deducting and depositing the same (in 16-17) alongwith intt. @ 1%. In 15-16 TDS return we have not included the payments.

1. Do we need to pay Late filing fee @ 200 per day for that period ?

2. If Late filing fee @ 200 per day is applicable, should it be paid as "Penalty" or "Others" (SBI epayment) and under which section should I mention it (11C or N11C)

Neither we have deducted nor deposited. In the current year we are depositing the same.

 

 Penalty for failure to deduct tax at source Section 271C. If any person fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay as aforesaid.This penalty is imposable by Joint Commissioner.

Prosecution for failure to deduct /deposit tax at source

Section 276B. If any person fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B then, such person he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.This penalty is imposable by Joint Commissioner.

 

Can I deduct and deposit TDS for 2015-16 in current FY ?

First of all as you have already filed TDS returns for 2015-16 there is no question of late filing penalty of Rs 200 per day.

Secondly you can deduct tds for prev financial year (say 2015) in current financial year (2016) but the expenditure on which tds is required to be deducted shall be disallowed to the extent of 30% in 2015 ( I'm supposing that you are making payment to a resident person) but when you'll make the payment in current year that 30% will be allowed in 2016.

 

Remedy to this mistake is , if that payee has already submitted his return of income and duly paid his taxes on amounts received from your org then you can take declaration from him and you won't need to take any action say deduct and pay taxes now.

First of all as you have already filed TDS returns for 2015-16 there is no question of late filing penalty of Rs 200 per day.

Secondly you can deduct tds for prev financial year (say 2015) in current financial year (2016) but the expenditure on which tds is required to be deducted shall be disallowed to the extent of 30% in 2015 ( I'm supposing that you are making payment to a resident person) but when you'll make the payment in current year that 30% will be allowed in 2016.

 

Remedy to this mistake is , if that payee has already submitted his return of income and duly paid his taxes on amounts received from your org then you can take declaration from him and you won't need to take any action say deduct and pay taxes now.

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