Default to pay tds

This query is : Resolved

Vanita (Querist)
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17 March 2014 An assessee has paid interest on unsecured loan which is more than Rs.5000 but he has not deducted TDS on it.

This interest is of March month of F.Y.-2012-13,and the deductee has shown such income and paid tax on it.

So,should the assessee(deductor) pay TDS now with interest or is he covered under section 204 for which he is not required to pay TDS?

Please help me out....

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 March 2014 If no TDS has been deducted then the assessee is in default. If only one incident of non deduction of TDS and no return is filed then 204 can be applied. If the assessee from whom TDS was deductible is not claiming any TDS in his return then there is no problem. The provision of section 40(a)(ia) will also not applicable as the payment of Interest has already been made. This section says payable.