Consequenses of NON PAYMENT of TDS elecronically

This query is : Resolved

CA Sanjay Baheti (Querist)
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21 December 2010 Kindly tell the CONSEQUENSES which an assesse can face, if it does not deposit the Tds ONLINE (ie. through e-payment) even though it is liable to.. As Banks still accept the deposit of tds through Challans. Thanx.

CA.RAJIV SHUKLA FCA

CA.RAJIV SHUKLA FCA (Expert)
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21 December 2010 The optional scheme of electronic payment of taxes for income-tax payers was introduced in 2004. With a view to expand the scope of electronic payment of taxes, it is mandatory for the following categories of taxpayers: -

1.All corporate assessee’s;
2.All assessee’s (other than company), to whom provisions of section 44AB of the Income Tax Act are applicable.
The scheme of mandatory electronic payment of taxes for income-tax payers is made applicable from 1st April 2008. This is applicable for all payments, irrespective of the assessment year to which it belongs. That means, if any tax has to be paid for AY 2007-08, also then it has to through be e-payment.
Taxes that can be paid are:

1.Advance Tax for Income Tax and FBT
2.Self Assessment Tax for Income Tax and FBT
3.Tax Deducted at Source
4.Tax Collected at Source

If you prove the not appropriate Banking Facility there then Credit shall be granted by ITO.

In other Cases Penalty may be imposed by ITO in own discretion but specific penalty is not mentioned else where.