Ashim kr Ray (social service) (1695 Points)
04 August 2016
Shreesh Kumar
(CA Final)
(122 Points)
Replied 04 August 2016
Dear Ashim,
Following sums are to be deposited with Government
Penalty in case of Non-Filling of Return:
As per section 234E of Income Tax Act 1961 as amended by Finance Act 2016, if return is not filed before the due date of filling Person shall be liable to pay, by way of fee(penalty), a sum of two hundred rupees for every day during which the failure continues. But the sum payable shall not exceed the amount of tax deductible.
In other simple words if you haven’t filed the TDS Return Online before the due date you shall be liable to pay a Penalty. The penalty is of Rs. 200 per day till the time the default continues. However, the total penalty that is calculated at the rate of Rs. 200 per day should not exceed the total amount of tax deducted.
Interest in case of Non Deduction and Non Payment of TDS:
As per section 201, if any person who is liable to deduct tax at source does not deduct it or after so deducting fails to pay, the whole or any part of the tax to the credit of the Government, then, such person, shall be liable to pay simple interest as given below:
On Non Deduction:
Interest shall be levied at 1% for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax was deducted.
On Non Payment:
Interest shall be levied at 1.5% for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax was actually remitted to the credit of the Government.
In other words, interest will be levied at 1% for every month or part of a month for delay in deduction and at 1.5% for every month or part of a month for delay in remittance after deduction.
Further Point to be noted:
Every deductor has to furnish quarterly statement in respect of tax deducted by him i.e., TDS return. As per section 201(1A), interest for delay in payment of TDS should be paid before filing the TDS return
Regards
Shreesh Kumar
Ashim kr Ray
(social service)
(1695 Points)
Replied 04 August 2016
Dear experts
One more thing want to be known after submitting the Tds return within how many days its will reflected in 26AS,
and if i made delay in submitting the quartely TDS than whether i have to pay penalty before submitting the next quarter.
CAclubindia
