Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit):
| Default/ Failure | Section | Nature of Demand | Quantum of demand or penalty |
Failure to deduct tax at source | 201(1) | Tax demand | Equal to tax amount deductible but not deducted |
| 201(1A) | Interest | @1 % p.m. of tax deductible | |
| 271C | Penalty | Equal amount of tax deductible but not deducted | |
| Failure to deposit tax at source | 201(1) | Tax demand | Equal to tax amount not deposited |
| 201(1A) | Interest | @1.5% p.m. of tax not deducted | |
| 276B | Prosecution | Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine | |
| Failure to apply for TAN No. u/s 203A | 272BB | Penalty | Rs. 10000 |
| Failure to furnish prescribed statements u/s 200(3) | 272A(2)(k) | Penalty | Rs. 100 every day during which the failure continues subject to maximum of TDS amount |
| Failure to issue TDS certificate u/s 203 | 272(A)(g) | Penalty | Rs. 100 every day during which the failure continues subject to maximum of TDS amount. |
| Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C) | 272(A)(i) | Penalty | Rs. 100 every day during which the failure continues subject to maximum of TDS amount |
| Failure to mention PAN of the deductee in the TDS statements and certificates | 272B | Penalty | Rs. 10000 |
If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.
However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.
I could not file IT Return for 2016 -17, how to obtain Form 16A to file IT Return. Plz advise.
As this post was written nearly three years ago and hence I would like to know whether the ‘Quantum of penalty or demand’ holds good even now or there is any change? Please change the date of this post to current date and also alter corrections, if any, in last two paragraphs.
RK Bhuwalka
Why you keep sending back-dated information. If the rules have not changed then you can date your blog as current date. There are chances for readers to think that it is an old news. Trust you will enlighten me.
RK Bhuwalka
Do you have any office at Chennai to support the Customers regarding to E Filing of TDS ?
Dear asai,
Our Support team is located at Kolkata. You can call us at our helpline number at (033) 22623535 / (033) 64596006 for your queries.
What is the remedy if a deductor after deduction of due tax does not issue Form 16A to the deductee .
what is the tds rate on professional
10%
thanx for information and specially for mailed .
How much time period of tax demand notice
We have received Notice from TDS department for paying interest and late filing fees for FY 2012-13. Please help me how to file correction statement and in Return and show interest and late fee payment.
Please tell me which file to be download from TRACES to make correction to pay interst/late fees payment for FY 2012-13.
sir
if i request for form 16A for assessment year 2016-17, 2nd Quarter, after 30/10/2015. then what would be the process. please me tell soon
Need to get my Form 16,
Please tell how and where to download it now.
Dear Raghulraj,
If you are a deductee then you have to ask your deductor for Form 16 and if you are a deductor then you have to request Form 16 from TRACES. To view the tutorial on how to download Form 16 from TRACES, click here >> http://contents.tdscpc.gov.in/en/download-form16-etutorial.html
Sir couldn’t download my form 16 and 26 as how to download both form. Sir I start registration process in tdscpc so some error message your details are invalid but I m all space fill-up according to form 16 issued my service employr. If That form 16 wrong then how to get accurate 16
Thanks for usefull information
Thanks for usefull information
Sir,
This is a very useful information to all TDS deductors.
Very good summarised information.
Thanks for the same. Keep it up.
Dear Mohamed Gayaz,
Thank you for your valuable feedback.
I supplied the goods to Govt.Department. They deducted TDS and not deposited to IT for the past 2 years. Question-1. TDS is applicable for only Goods Supply? Q-2. What are the consequences if not deposited? Q-3 What is my legal rights to recover the amount? Kindly clarify
This is usefull data to all deductor and tax payers.thanks
If i deduct TDS U/s 92J and in actual it should be deducted U/s 92C. What are the consequences ?
Any panelty..??
Kindly explain..if your answer is yes, then quote the respective section.
WE HAVE NOT FILLED THE TDS FOR Q2 AS WE DO NOT HAVE ANY TRANSECTION IN THAT PERIOD. IS WE STILL GET THE PENALTY FOR LATE FILLING / NOT FILLING ???
RESPCTED SIR,
IN QTR2 RETURN WHEN WE CREATE 26Q WITH PAN NOT AVAILABLE. ASK FOR REFERENCE NO, WHEN WE ENTER REFERENCE NO IT SHOWS ERROR INVAILD DEDUCTEE REFERENCE NO. PLS ANY BODY KNOW WHAT REFERENCE NO WE ENTER IN THIS FIELD OR ITS SOFTWARE PROBLEM
I HAVE FILED THE TDS RETURNS IN LAST YEAR (2013-2014)AS NIL RETURN. IF I SUBSIQUENTLY FILLING THE REVISED TDS RETURN WHAT WOULD BE PENALTY I HAVE TO PAY.
Thank you for summerised usefull information on time to time
Very very thanks for providing lot of information
Sir,
i am running Trading/service proprietory business my turnover not exceeding Rs 1.00 crore but i am dedut tds u/s 194c and deposited tds with interest and filling tds return on 11/07/2014.Income tax dept sent notice of demand u/s 234E what i can do regarding this matter
DEAR SIR,
I AM WORKING IN ONE INSTITUTE WIT SALARY 50,000. BUT I AM GETTING ONLY 45,000. THEY ARE SAYING THAT LEFT OF 5000 IS TDS. BUT THEY ARE NOT GIVING ANY CERTIFICATE, AND THEY ARE SAYING AT LAST YEAR ENDING YOU WILL GET THE WHAT EVER DEDUCTED MONEY. IS IT CORRECT SIR PLS HELP ME SIR
while making tds return for Q4 of FY-2013-14 i have wrongly updated as flag “c”.
how to rectify this mistake
Very useful update and timely reminder. AGS SOLUTIONS – Bangalore
Very useful summarized information.
Which deductors are Required to Issue TDS certificate Till 30 May 2014.
And whats the time period for individual decductor to Issue TDS Certificate..As For This Year i being Individual Decductor have not issued any Certificate..What are Consequences And penalty.
We have a interest & late deduction notices from TDS-CPC. we already paid through challan-281. and then how to we fill the penalty challans in Quartly statements?????
what if TDS deducted in wrong section and deposit for the same wrongly?
very useful chart for accountant & professionals.
Sir, My income Tax Has already been deposited through our departmental channel plz.
Thanks a lot for providing such info
regards
VIJAY
IF TAX WAS DEDUCTED FROM PAYMENT (COMMISSION ) ON 8/08/2013 BUT FAILED TO REMIT THE AMOUNT TILL 10/12/2013 WHAT WILL BE THE PENALTY, PLEASE REPLY
I have received a demand of Rs. 9200/- from the IT department u/s 234E. My question is how to deposit the same (undet which challan and section, i am having both 194 C & 194 I) and how to file the correction statement.
You may pay the amount under either of the section 94C or 94I, it does not make any difference as this levy u/s 234E isn’t in respect of any particular payment rather its nor late filing of the TDS return. In case you would like to pay online, following are the steps
STEP 1 – Visit – https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
STEP 2 – Choose Challan 281, Fill all details as requires (Noe since you have received a notice so code for type of payment will be 400). In nature of payment use either 94C or 94I.
STEP 3 -Proceed and confirm name of organisation. In banks website put down the amount under 234E and pay.
STEP 4 – Wait for the challan to get updated on Oltas. Download consolidated file from TRACES and file a correction after adding that challan details and respective CSI file.
STEP 5 – Submit the fvu file generated with form 27A, original TDS receipt and other documents as required.
STEP 3 –
How i can avoid the penalty for late filing tds return ( late fee).
Return for 2012-13 q1 to q4 filed on Sep 2013. so we got notice from tds department Gaziyabad. Is there any solution ?
THANKS FOR INFORMATION .IT IS USEFUL.
very useful information for timely inform. thank you
It is a well defined summerised data. Thanks for the timly info..
I WOULD LIKE TO KNOW THE POSITION IF THE RECEIPTS OF A CONTRACTOR EXCEEDS 1 CRORE IN A YEAR OR A SINGLE TRANSCTION IS MORE THAN ONE CRORE THE POSITION OF SURCHARGE ON DEDUCTOR
If I forget to disclose one of the income of which TDS was already deducted and deposited. No additional tax liability.
What penalty will be charged in this scenario.
Dear Sir,
No penalty will be charged.
Really very useful contents for all the practicenors
very useful and informative article
thanks
thanks for useful information
GOOD SUMMARISED INFORMATION. PLEASE KEEP IT UP.
thanks for such a nice informative mail