23 March 2013
If employer/deductor/payer fails to deposit TDS within the time limit as mentioned above, then he is liable to pay interest penalty @ 1.5% for every month or part of the month from the date of deduction. (w.e.f. 1st July, 2010 by Finance Act 2010). According to Income Tax Act, Interest is not a penalty so it cannot be waived off. The payment must be paid for the failure or late deposit of TDS.
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