If a person who has not deducted TDS on Payment of an expenditure on which TDS should be deducted or if TDS has been deducted but not deposited timely then what will be consequences.
Thanks in Advance
5 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 17 September 2011
1) if the TDS so deducted was paid( with interest) before the filing of his return for that year, and TDS returns submitted before filing of his incometax return, then no issue
2) if the TDS not deducted or TDS not paid upto the time return filing, then expenses would be disallowed. apart from it, TDS department will also exercise their power for recover of TDS payable with interest and penalty.
VEDANTA DESHIKA
(Practice)
(317 Points)
Replied 17 September 2011
As per 201 , the employer/ pricipal officer will be treated as assessee-in-default iro such tax
also penalty u/s 221 is attracted
Int u/s 201(1A) for late deposit of TDS
Penalty u/s 271C
Prosecution u/s 276B
Many of des orders, demands for penalty require previous approvals from JCIT, CIT etc
SHIVANI MAHESHWARI
(CA)
(548 Points)
Replied 17 September 2011
you means there will be double taxation and what will be the amount of penalty &rate of interest.
VEDANTA DESHIKA
(Practice)
(317 Points)
Replied 17 September 2011
It is not exactly double taxation.
Penalty = sum equal to tax which he failed to deduct
Int = 1 % for every month or part of a month on the amount of TDS deductible for the period b/w de date wen TDS was deductibel and TDS was actually deposited
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