Statutory provisions attracted on failure to deposit tax in government account after deduction

Where the employer has deducted the tax at source but failed to deposit wholly or partly, the tax so deducted in government account, the following statutory provisions are attracted:-

  • Interest u/s 201(1A)- The deductor is treated as an assessee in default and interest u/s 201(1A) is leviable @1.5% for every month or part of the month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid. Further, the tax along with the simple interest u/s 201(1A) becomes a charge upon all the assets of the deductor.
  • Penalty u/s 221- Penalty to the extent of tax not deposited is leviable by the A.O.
  • Prosecution proceedings u/s 276 B- Where the deductor has failed to deposit tax deducted at source, in govt. a/c without a reasonable cause then he is punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 years and with fine.

Last date for issuance of TDS certificates for Quarter 4 of FY: 2016-17 is 15th June, 2017

The last date for issuance of TDS certificates for the 4th Quarter of FY: 2016-17 is 15th June, 2017.

The above is applicable for all other than government deductors.

Delay in certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted. Click here for more details

Quick steps to generate TDS Certificate using TDSMAN In TRACES Information menu

1. Request for Form 16A / Form 16 (Part A).
2. After acceptance, go to “Download Requested files” to download the file.
3. Download PDF converter Utility to create PDFs.

In PDF Converter Utility provide the path of the downloaded file. Provide your TAN as password and click on “Proceed” to create the certificates.


Revision of due date to issue Form 16

      No Comments on Revision of due date to issue Form 16

Form 16A for non salary deduction is to be issued within 15 days of filing the quarterly returns.

However as per the Income Tax department in case of Form 16 (for salary deduction) the due date as per rule 31 was 31st May, 2017 which was the same as the due date to file TDS return for the last i.e 4th quarter.

The Income Tax department has revised the last day to  issue Form 16 by 15 days i.e.  to 15th June 2017.

To read the notification click here


Due Date for payment of TDS is 7th June, 2017 for tax deducted during May 2017

Due Date for payment of TDS is 7th June, 2017 for tax deducted during May 2017

Please Note:

In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.

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