Income Tax Department had issued instructions, notifications, circulars, press notes etc. for awarness regarding Tax and TDS or TCS to Deductors, Taxapyee etc. Apart from this the TDS deductors will make mistakes and face unwanted critical problems of Tax and TDS. In this matter, we bring your consideration about Fine and Penalties which comes u/s. 272(A)(g). The is applicable for deductors other than the Office of the Government. The Delay in requesting certificates or issuance of TDS/TCS Certificates for Q4 of Asstt. Year 2014-15 may causes fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted. The last date for issuance of TDS/TCS certificates for Q4 of Fin.Year 2013-14 is 30th May, 2014.
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.
