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TDS non payment

Arihant (Business) (207 Points)

12 August 2010

Is there any penalty imposed under the provisions of the act for non payment of TDS deducted.

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5 Replies

Saurabh Toshniwal (ca final) (2358 Points)
Replied 12 August 2010

tds should be deposited upto the 7th of the following month & if it is deposited late then interest will be charged on tds amt. & rate of interest is 1% p.m. or part of month

eg: tds is deducted on 18th aug 2010 then the last date for deposit is 7th sep. 2010 & depositing tds amt. after this date interest will be charged @ 1% p.m. or part of month

Sharad Saini (Student) (286 Points)
Replied 12 August 2010

intt rate now is 1.5% pm

Sumit Agarwal (Inventory/ Cost Manager) (26 Points)
Replied 13 August 2010

There is not penalty provision on non payment. you will have to pay only interest liability @ 1% p.m. and if your TDS Return is late due to this, there is a provision of penalty by 100/- per day u/s 272A(2).

CMA. Subhash Kumar Jha (General Manager - Finance) (8391 Points)
Replied 13 August 2010

Apart from the interest, we are talking about, penalty under section 221 may be levied for failure to deduct / deposit TDS in time & the amount of penalty may be upto the sum of TDS involved.