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Tds panelties

JOHER (Partner) (23 Points)

18 March 2017

If TDS not deducted while bill was generated, & if we deduct after 3 - 4 months, & deposit in TDS a/c, is it any panelty clause ? or interest ? please reply in detail....

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3 Replies

Ajoy P (Service) (11 Points)
Replied 18 March 2017

Dear Member,

As per Sec.201 of the Inocme Tax Act, interest will be levied @ 1% for every month or part of a month for delay in deduction and 1.5% for every month or part of a month for delay in remittance after deduction.

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natarajan (manager) (52 Points)
Replied 18 March 2017

cash transaction Rs more than 5,00,000 between individual and HUF a/cs of the same person.how the department will deal with it.

your guidence is requsted

Ajoy P (Service) (11 Points)
Replied 18 March 2017

Dear Sir,

As per the Income Tax Act cash transactions in a single day with a person beyond Rs.20,000.00 is an inadmisible expense. You can split the expenses over a period of time.

If that is not possible then please collect the persons email id, PAN card copy and address for communication. Preserve the same, as it may be required at a later stage during the course of assessment.

Further, if the expenses are covered u/s 194 and TDS has not been deducted then please request the party to provide Income Tax Return and preserve the same along with the other documents as it can be produced at a later stage during the course of assessment.