Penal Provisions for TDS/TCS Defaults

Thursday, September 16, 2010 | comments


PENAL PROVISIONS FOR TDS/TCS DEFAULTS

Below is a list of some Sections regarding TDS/TCS vide which deductor can be penalise at any time.  Every deductor should read below nature of defaults so that he can avoid any penalty in future. 


S.No.
Section
Nature of default
Penalty
  1.  
221 Read with section 201
Failure to deduct or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then , such person, shall without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of such tax and hence shall be liable to penalty under section 221.
Sum equal to the amount of tax which he/it failed to deposit into Central Govt. Accounts within stipulated time.
  1.  
271C
Failure to deduct the whole or any part of tax at source as required by or under the provisions of Chapter XVIIB.
Sum equal to the amount of tax which he/it failed to deduct.
  1.  
272A(2)(c)
Failure to file the return of TDS under section 206.
Rs. 100 for every day during which the failure continues but the penalty shall not exceed the amount of tax deductible.
  1.  
272A(2)(f)
Failure to deliver or cause to be delivered in due time, a copy of the declaration in new Form No. 15G/15H as per section 197A.
Rs. 100 for every day during which the failure continues but the penalty shall not exceed the amount of tax deductible.
  1.  
272A(2)(g)
Failure to issue TDS certificates as required by section 203 or section 206C.
Rs. 100 for every day during which the failure continues but the penalty shall not exceed the amount of tax deductible.
  1.  
272A(2)(i)
Failure to furnish a statement as required by section 192(2C) relating to payment of tax on non monetary perquisites of the employees.
Rs. 100 or every day during which the failure continues.
  1.  
272A(2)(j)
Failure to deliver or cause to be delivered in due time, a copy of the declaration in form No. 27C.
Rs. 100 or every day during which the failure continues.
  1.  
272A(2)(k)
Failure to deliver or cause to be delivered a copy of the quarterly statement with in the time specified in section 200(3).
Rs. 100 or every day during which the failure continues.
  1.  
272A(2)(l)
Failure to deliver or cause to be delivered the quarterly return with in time specified under section 206A(l).
Rs. 100 or every day during which the failure continues.
  1.  
272B
Failure to intimate PAN to the tax deductor/tax collector at source or wrong quoting of PAN .
Rs. 10,000/-
  1.  
272BB & 272BBB
Failure to apply for allotment of TAN and failure to quote TAN in challans, Certificates and statements.
Rs. 10,000/-
  1.  
276B
Failure to pay the tax deducted at source to the credit of Central Government.
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.
  1.  
271CA
Failure to Collect the whole or any part of tax at source as required by or under the provisions of Chapter XVIIBB.
Sum equal to the amount of tax which he/it failed to collect.

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