Below are the three simple steps for Tax Deductors to follow in case of TDS and TCS:
- Correct TDS while making payment as required by law
- Deduct tax at higher rate in case valid and correct PAN of deductee is not available with you
Failure to deduct /collect tax at source shall result in penalty equal to the amount of tax failed to be deducted/collected.
i) Non Government Deductors to deposit:
The tax deducted within 7 days from the end of the month in which deduction was made and by 30th April, 2015 where deduction (Other than deduction u/s 194IA) was made in the month of March, 2015.
ii) Government Deductors to deposit:
The tax deducted at source on the same day in case of book transfer & by 7th of the following month if using challan
Non-deposit of tax deducted / collected to the Government account shall invite Prosecution.
TDS certificate in Form 16A on income other than salary for the quarter ended on 31st March, 2015 by 30th May, 2015
TDS certificate in Form 16 for the financial year ended on 31st March, 2015 by 31st May, 2015
Delay in issue of TDS certificate shall result in penalty of Rs. 100/- for each day of default not exceeding amount of tax deductible/collectible.