Failure to Deduct TDS
If a person fails to deduct the whole or any part of TDS as required under any of the provisions of sections 192 to 196D then:
(a) The person responsible for deduction is treated as ‘assessee in default’
(b) He shall be liable to pay by way of penalty a sum equal to the amount which he failed to deduct.
(c) He shall be liable to pay simple interest @12% p.a. on amount of tax liable to be deducted.
Failure to Deposit TDS
if a person after deducting TDS fails to deposit the same, then:
(a) The person repsonsible for deduction is treated as ‘assessee in default’
(b) penalty a sum equl to the amount which he failed to deposit (SEC. 271C)
(c) simple interest @ 12% p.a. till the date of actual deposit in Govt. treasury.
(d) Rigorous punishment for a term which shall not be less then three months by may extned up to seven years and fine.( sec. 276B)
Related posts:
- Interest, Penalty & Prosecution for Failure to Deposit Tax Deducted
- Penalty for non deduction of TCS
- How to Deduct Tax at Source (TDS) on Salary Step by Step
- Who is responsible to Deduct Tax At Source (TDS)
- How to Avoid Tax Deduction at Source (TDS) on Bank Fixed Deposit?
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Nowadays it is a FAD among ITO’s doing “Income tax SCRUTINY” to look for loopholes in the TDS deduction by the Assessee for disallowance of the Expenditure. Though the GOI has stipulated “penalty of 12% Simple Interest” it is a wonder if any Assessee subject to TDS EVER GETS REFUND so promptly…He has to BRIBE THE ITO concerned to get his REFUND….else NOTHING MOVES in the IT Dept….as SIMPLE as THAT….When will the GOI start penalising the ITOs for NOT crediting back REFUNDS in the Accounts of the Assessee suo moto as per the Law immediately AFTER IT Returns are filed??