Tds deducted at lower rate

Q1 suppose tds is to be deducted to 2%, instead it is dedcuted at a lower rate, say 1%. not only qtrly return but also the annual income tax return of the company is filed. Now a default list is obtained from the nsdl site regarding the same.

 

Now what option does the deductor co. has?

- can it claim the diff of 1% from the deductee

or 

- will the company have to pay any penalty/int on short deduction?

 

 

 

Q2 Pan was wrongly quoted while filing tds return. IT return of the year is also filed. IT Deptt asks for tds @ 20%. if the co revise its return, will it be saved from this default?

Replies (2)

Q1: Deductor has to pay remaining (Short) TDS along with interest.

Q2: Yes, if company can revised its return along with correct Pan. It will definately save from default of TDS @ 20%.

Thanx Hemant

The problem for query 1 is that the financial year is already closed. for the current year, there is no transaction with the concerned party. So how will the company recover the remaining amount  from the party?

wont it be better that no more tax is deposited with IT Deptt.....n the expense is disallowed.

Can u please quote the relevant section for ur ans i.e. co will have to pay the short deduction along with interest

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