Question: What Happens If TDS Is Deducted But Not Paid?

When should TDS not be deducted?

But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

However, in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit..

What is the penalty for late TDS payment?

As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.

What if TDS is deducted at higher rate?

When your employer deducts more than the income tax payable: This makes it easier for the IT department to refund you the excess tax paid. In case you do not have taxable income, you can apply for a lower or NIL TDS certificate from your jurisdictional Income Tax Officer in Form 13 as per Section 197.

Is TDS and income tax same?

Income tax: It is paid on the annual income where taxes are computed for a particular financial year. TDS: It is deducted at source on a periodic basis in the particular year. Income Tax: The taxpayer determines his liability and makes the payment directly to the government.

Can TDS be paid without tan?

The buyer of any immovable property need not obtain a TAN (Tax Deduction Account Number) for making payment of the TDS on immovable property. You can make the payment using your PAN.

What is the due date for TDS payment for March 2020?

TDS Due Dates of FY 2020-21 for Return FilingQuarterPeriodLast Date of Filing1st Quarter1st April to 30th June31st March 20212nd Quarter1st July to 30th September31st March 20213rd Quarter1st October to 31st December31st Jan 20214th Quarter1st January to 31st March31st May 2021Aug 12, 2020

What is the rule of TDS deduction?

TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.

Is TDS is refundable?

If the deductee fails to submit the required certificates on time, to claim various deductions under Section 80C, the deductor may deduct TDS in excess of the liability. You can easily claim a refund while filing the ITR and provide your bank details to expedite the refund process.

Who pays TDS buyer or seller?

The purchaser of an immovable property (whether built up or under construction) of value Rs 50 lakh or more has the responsibility under the Income Tax Act to pay withholding tax of 1% from the sale consideration payable to the seller of the property.

How can I get TDS refund?

You need to file a TDS refund claim when the employer has deducted more tax than the actual liability. You can claim the difference amount by filing an income tax return. You will have to provide the bank account number, name of the bank, and Indian Financial System Code (IFSC) details for successful processing.

Can we file TDS return after due date?

Failure to file your TDS returns within the due date will mean that you will be subject to a late filing fee of Rs. 200 per day. The fee will be charged for every day after the due date, until the date on which your return is filed. However, the maximum fees that you will have to pay will be limited to the TDS amount.

What happens if TDS is deducted but not deposited?

If TDS is not deposited in time, employees cannot claim tax credit at the time for filing their return. Deducting tax from employees and not depositing it in time is an offence punishable under the law. The CBDT said last month, only in 50 big cases prosecution notices were issued by the Mumbai IT office.

What is the penalty for late deposit of TDS?

If you deduct the TDS amount but fail to deposit the same, you will have to pay a simple interest of 1.5% as interest on late payment of TDS under Section 201(1A)(iie) of the Income Tax Act.

How can I pay TDS late?

Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available. Download the Conso File from Traces portal. In case of payment towards late filing fee, please Tag the challan towards the payment, in the “Fee” column” using RPU Ver.

What is the limit for TDS on interest?

TDS threshold raised to Rs 40,000 from Rs 10,000 This means that your bank and post office will no longer deduct any tax if the interest income from your deposits is up to Rs 40,000, as opposed to Rs 10,000 earlier.

How do you calculate interest on a late payment?

To calculate the interest due on a late payment, the amount of the debt should be multiplied by the number of days for which the payment is late, multiplied by daily late payment interest rate in operation on the date the payment became overdue.

Do I have to pay income tax after TDS?

Even the bank has been crediting interest income after deducting taxes. And you do not have any other source of income. … “Banks do not know your slab and they deduct TDS at 10% from deposit incomes, which may lead to a tax due in your return if you belong to the 20% or 30% tax slab,“ explains Gupta.

How is TDS penalty calculated?

Due Date of TDS Return :Delay in filing TDS Return (In Days) :Late fee for fiing TDS Return u/s 234E amounting to Rs 200 per day (maximum to TDS amount) :Penalty u/s 271H is applicable which is Rs 10,000 (may be exteded to Rs 1,00,000) :

Who is responsible for TDS under Income Tax Act?

From September 1, 2019, an individual or HUF paying any sum to a contractor or a professional or commission or brokerage more than Rs 50 lakh in a financial year would be required to deduct tax at source (TDS) at the time of credit of such sum or at the time of payment of such sum; whichever is earlier.

How can I check my TDS without tan?

How to file return and claim my TDS without TAN number of… Go to incometaxindiaefiling.gov.in. Login into your Account (PAN based). Once Login, go to My Account >> View Form 26AS (Tax Credit).