Special Combo Offer on TDSMAN (FY: 2019-20 & FY: 2020-21)

Get Standard Editions of TDSMAN (FY: 2019-20) & TDSMAN (FY: 2020-21)
at Rs. 5850/- + GST @ 18% instead of Rs. 7800/- + GST@18%

Click here to Order Now

Prepare TDS Returns for all quarters for the current financial year and earlier years (including preparing Correction Statements) and also the forthcoming financial year.

Please note  TDSMAN (FY: 2019-20) will be made available immediately, and TDSMAN (FY: 2020-21) once it is launched sometimes in April 2020. This offer is for limited period.

Some of the features of TDSMAN Software are as follows:

  • Online Filing
  • Bulk PAN Verification
  • Online Challan Validation
  • Default Analysis to avoid Errors
  • Auto Tax and Interest Calculation
  • Auto Fill Challan 281
  • Fully integrated with TRACES

Click here to Get Free Trial

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

If 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.
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What is the Interest for non-payment of tax as per demand notice?

Let us first understand the provisions of section 220(1) relating to payment of tax as per demand notice. Then we will understand the provision for levy of interest in case of non-payment of tax demanded as per demand notice issued under section 156.

When a demand notice under section 156 has been issued to the taxpayer for payment of tax (not including notice for payment of advance tax) then such amount is payable within a period of 30 days as per section 220(1). This period may be reduced with approval of designated authorities. In case of failure of payment of amount in the demand notice issued under section 156, as per section 220(2), the person shall be liable to pay simple interest at 1% for every month or part of a month. Interest shall be payable for the period commencing from the day after the last date till the day on which the amount is paid. After TDS statement is processed the deductor is intimated the amount payable or refundable. This intimation is deemed as notice of demand under section 156, failure of which attracts interest under section 220(2).

Where interest is charged under sub-section (1A) of section 201 on the amount of tax in intimation which has  been specified sub-section (1) of section 200A for any period no interest shall be charged under Section 220(2) on the same amount for that period.

[As amended by Finance Act, 2017]

It is also provided that where interest is charged under sub-section (7) of section 206C on the amount of tax specified in the intimation issued under sub-section (1) of section 206CB for any period, then, no interest shall be charged under sub-section (2) on the same amount for the same period.

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7th January – due date for TDS & TCS payment for December

7th January, 2020 is the due date for TDS and TCS payments for the deductions made in December 2019. Make sure to do the needful on time to avoid interest. To understand the details / calculations for late payment interest click on the links below.

Calculation of Late Payment Interest

Interest on Late Payment of TDS

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