delay in deduction fo tds

This query is : Resolved

yashvi sancheti (Querist)
Follow

02 May 2009 what are the consequences of delay in deduction of tds???????.
Whether such tds deducted before the end of the F.Y. and also deposited with in the prescribed time.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

02 May 2009 If tds has been deducted delayedly in the same financial year in which payment is made.

Then only interest is payable and for delay in filing of returns penalty may arise.

If tds has been deducted delayedly by a year. Ie this financial year tds has been deducted in next finanial year

In the year of payment of expenditure expenditure is disallowed.

In the year of payment of tds the expenditure will be allowed. TDs has to be paid alongwith interest. And if huge tds is pending peanalty wil arise.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

Upgrade to CAclubindia Pro. Subscribe Now!

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

02 May 2009 Agree

taxindiaconnect

taxindiaconnect (Expert)
Follow

02 May 2009 Apart from the disallowance of such expendtiure in your income tax reurn u/s 40a(i) , interest payment u.s 201, penalty u/s 271C a prosecution proceedings may also be initiated u/s 272B of the Income Tax Act 1961.