Presentation on TDS

Assessee in default (Section 201) does not deduct or does not pay or after so deducting fails to pay, the whole or any part of the tax

Consequences of Non-Compliance Does not deduct/ Late deduction Does not pay/ Late payment Interest (S. 201) Interest @ 1% p.m from deductible date to actual deducted date Interest @ 1.5% p.m from deducted date to actual payment date Penalty Upto amount not deducted (S. 271C) Upto amount not paid (S. 221) Imprisonment (S. 276B) -- 3 months to 7 years and fine

Other Penalties for statement default Nature of Default Relevant Section Consequence Fees if fails in furnishing TDS/TCS statement Section 234E w.e.f 01/07/2012 Rs 200 per day upto tax deductible or collectible amount Fails to file TDS/TCS statement or Furnishes inaccurate information Section 271H w.e.f 01/07/2012 Rs 10,000/- to 1,00,000/- Prior to 01/07/2012 S. 272A(2)(k)- Rs 100 per day upto tax deductible or collectible amount Fails to file information Furnishes inaccurate information as required u/s 195(6) Section 271-I w.e.f 01/06/2015 1,00,000/- Non issue of TDS/TCS Certificates Section 272A(2)(g) Rs 100 per day upto tax deductible or collectible amount

Closure of Short Payment/Deposit defaults It arises in following cases: when the amount of TDS deposited is less than the amount of TDS deducted, when the tax in respect of deductees of higher amount is mapped against a Challan of lesser amount, when there is an error in entering Challan details or due to some reasons, the Challan does not match with details of OLTAS. RECTIFICATION: In case of Challan mismatch: Online without DSC- Tag the incorrect Challan with the Correct Challan Offline- Correct the Challan details and file correction statement In any other case: pay the tax amount including interest u/s 201 file correction statement

Closure of Short Deduction defaults It arises in following cases: Invalid/Incorrect PAN: TDS is not deducted as per provisions of Section 206AA i.e 20% minimum Lower Deduction: TDS is deducted below the rate as required. e.g TDS deducted @ 1% u/s 194C for other than Individual/HUF RECTIFICATION: In case of Invalid/Incorrect PAN (Only max upto 2 alphabets & characters allowed): Online with DSC Offline- Correct the PAN and file correction statement In any other case: pay the tax amount including interest u/s 201 file correction statement

Thank you CA. Ankur Bansal + 91- 9988251003 Partner N A V & CO Chartered Accountants Chandigarh