TDS

If a person fails to deduct TDS and/or deposit TDS , shall be liable to pay penlty a sum equal to the amount which he failed to deduct u/s 271C. He shall be liable to pay simple interest at 12% p.a. on amount of tax liable to be deducted.

Mr. Mihir is right, but now rate of interest 18% if late deposited

If any person fails to deduct TDS and / or deposit TDS within due date, shall be liable to pay penlty/Interest.

Penalty is a sum equal to the amount which he failed to deduct u/s 271C. and also

He shall be liable to pay simple interest at 12% p.a.(1% p.m) on amount of tax liable to be deducted.

- Ashok

IF FAIL TO DEDUCT TDS FOR DELAY PAY INT 1% P.M FOR LATE DEPOSIT PAY INT 1.5 % PER MONTH

if a person fails to deduct TDS and/or deposit TDS , shall be liable to pay penlty a sum equal to the amount which he failed to deduct u/s 271C. He shall be liable to pay simple interest at 18% p.a. on amount of tax liable to be deducted.

As per section 201(1A), if any principal officer or company doesn't deduct tds the whole or any part of tax or after deducting fails to pay the tax as required by or under this act ,will be liable to pay simple interest

1) @ 1% for every month or part of month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted .

and

2) @ -1.5% for every month or part of month on the amount of such tax from the date on which such tax was deducted to the date on which is actually paid and such interest shall be paid before furnishing TDS statements.