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Missed tds deduction

25 September 2019

i forgot to deduct tds for an amount under 194j in first quarter and i already made payment to him in first quarter only..
what can i do now to avoid interest and penalty..

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3 Replies

V P Narasimhan (Accounts Manager) (791 Points)
Replied 25 September 2019

Treat it Creditor's account for the both the transactions. Deduct TDS for a whole thing. Pass entry at the end of the month with TDS due . Pay it in the subsequent month.

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Kapadia Pravin (17259 Points)
Replied 28 September 2019

@ balthi
Deduct TDS of first quarter alongwith 2nd quarter payment and then pay TDS to Government. Interest and penalty will be as prescribed.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 28 September 2019

1. Options available to you are to deduct TDS from the next payment onwards along with TDS which should have actually been deducted in the first quarter.
2. Deduct TDS (including 1 st quarter) and remit the same. However, interest @ 1% for no deducting TDS will be levied u/s 201(1A) and penalty will be imposable u/s 271C equal to the amount of tax not deducted.
3. However, penalty u/s 271C will be imposable only by the Joint Commissioner. He may waive the penalty if reasonable cause is shown and the amount involved is less.
Please correct me if the above solution has an alternative view.