Tds

This query is : Resolved

Pathan Mushtaque (Querist)
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24 September 2009 hi all please can anyone guide me regarding tds i.e if one fails to deduct tds what are the consequence of that, is there any penalty levielbe on deductor ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 September 2009 Penalty u/s 271C attracts. Penalty leviable is equal to the tax that should have been deducted.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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24 September 2009 agree

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Pathan Mushtaque

Pathan Mushtaque (Querist)
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25 September 2009 Thanks chackrapani, there is only one penalty not any other consequence ?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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25 September 2009 Interest @ 1% shall also be payable. This is in addition to the penalty.

Pathan Mushtaque

Pathan Mushtaque (Querist)
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29 September 2009 Following are the consequences if one fails to deduct tds
1) the person who is resposible to deduct tds if he fails he will be treated as "assessee in default"
2)he shall be liable to pay by way of penlty a sum equal to the amount which failed to deduct
3)he shall be liable to pay interest at 1% per month on the amount what he should have been deduct
4) Rigourus punishment of term 3 month which can be extended to 7 years