Thursday, September 16, 2010

Interest on TDS due to TAN Category

               Income tax department  can charge Interest on late payment of TDS due to wrong Category of your TAN number.   Most of deductors have mentioned their category of deductor in TAN as Central Govt. which is wrong like as Bank etc.   All categories of Deductors can be viewed as under :-

    In case Central Government Deductor, Liability of income tax deposit rise on Same Day.  Many bans has entered their category as Central. Due to this, they have received letters of Interest on Late Deposit of TDS. Category of Bank is PSU (Public Sector Undertaking) vide which there will be no interest as per section 201(1A) of Income Tax Act and also no penalty equal to tax under section 221read with section 201. 

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