One of the assessee has not deposited the TDS and hence not filed the Quarterly TDS return. Further TDS certificates are also not issued.
What is the penalty/interest for not depositing TDS
What is the Penatly for not filing TDS Return
What is the penalty for not issuing TDS Certificates.
This pertains to F.Y 2010-11. The reason behind non payment was shortage of funds.
Mr.Gaurant
If any assessee fails to deduct tax at source or fails to deposit the deducted tax to the credit of central government before the due date for filing his return of income the expenses on which tax is to be duducted at source such as (i) interest (ii) commission or bromerage, (iii) rent, (iv) royalty (v) fees for professional services or fees for technical servies payable to a resident or (vi) amounts payable to a contranctor or sub-contractor , the impugned expenses will not be allowed as expenses i.e. the assessee cannot deduct the said expenses from his income to arrive net profit as per the provisions of section 40(ia) of Income-tax Act, 1961.
As per provisons of section 201(1A) of Income-tax Act, the assessee who fails to deduct tax at source or fails to deposit the deducted tax to the credit of central government he is liable to pay
(a) interest on one percent for every month or part of amonth on the amount of such tax from the date on which such tax was deductible to the darte on which such tax is deducted;
(b) at one and one-half per cent for every month or prt of amonth n the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.
An assessee who fails to deliver or cause to be delivered within the time specified sub-section Z(1) of section 206A is liable to pay by way of penalty at the rate of Rs.100/- per every day during the which the failure continues.
Best Wishes
Sathikonda
Thanks for the reply.
Hence for Non deduction of TDS: 12% p.a. Interest
for Non Payment of TDS: 18% p.a. Interest
for non filing of return:Rs 100 per day penalty
The expenses is allowed only when TDS on it is paid.
I hope I understood correctly.
Thanks once again.
CAclubindia
