Interest:
Interest at the rates in force (12% p.a.) from the date on which tax
was deductible /collectible to the date of payment to Government Account
is chargeable. The Finance Act 2010 amended interest rate wef
01.07.2010 and created a separate class of default in respect of tax
deducted but not paid to levy interest at a higher rate of 1.5 per cent
per month, i.e. 18 per cent p.a. as against 1 per cent p.m., i.e. 12 per
cent p.a., applicable in case the tax is deducted late after the due
date. The rationale behind this amendment is that the tax once deducted
belongs to the government and the person withholding the same needs to
be penalized by charging higher rate of interest Penalty equal to the
tax that was failed to be deducted/collected or remitted is leviable.
In
case of failure to remit the tax deducted/collected, rigorous
imprisonment ranging from 3 months to 7 years and fine can be levied.
Failure
to apply for TAN in time or Failure to quote allotted TAN or Wrong
quoting of TAN :Penalty of Rs.10,000 is leviable u/s.272BB(for each
failure)
Failure
to issue TDS/TCS certificate in time or Failure to submit form 15H/15G
in time or Failure to furnish statement of perquisites in time or
Failure to file Quarterly Statements in time: For each type of failure,
penalty of Rs.100/- per day for the period of default is leviable.
Maximum penalty for each failure can be up to the amount of TDS/TCS. New
Section for Penalty for non submission of ETDS /ETDS return (section
271H)(applicable from 01.07.2012)
Failure to deliver statement within time prescribed u/s 200 (3) or to the proviso to sub-section (3) of section 206C may liable to penalty which shall not be less than Rs. 10,000/- but which may extend to Rs. 1,00,000/-. No penalty if payment of tax deducted or collected along with fee or interest and delivering the statement aforesaid before the expiry of 1 year from the time prescribed for delivering the such statement. However No penalty shall be imposed u/s 271H if the person proves that there was reasonable cause for the failure.(section 273B)
