This is Ravi Varma, in this article I will tell you what is the penalty for TDS.
When a person’s salary crosses the threshold limit set by the government, then the government has to pay tax what we call TDS.
And if a person does not deduct his TDS or deposit it to the government, then at that time the government imposes a penalty on him.
|TDS not deduct
|If we do not deduct TDS
|1% per month (only TDS amount)
|If we do not deposit the TDS
|1.5% per month (only TDS amount)
|If we do not return filling the TDS
|200 per day (only TDS amount)
Note**** If a person files his own TDS late, then the Assessing Officer can impose a fine of 10000 to 100000 on him.
**** This penalty is charged only on the deducted value of TDS
- If we do not deduct TDS:- If a person does not get his TDS deducted, then a penalty of 1% is levied on him.
- If we do not deposit the TDS:- As we know if our TDS has been deducted then it has to be deposited to the government on the 7th and if we do not do so then a penalty of 1.5% is imposed.
- If we do not return filling the TDS:- If we do not file the TDS return of any person then at that time the government levies a fine of Rs 200 per day.