Interest:
Interest at the rates in force
(12% p.a.) from the date on which tax was deductible /collectible to the date of payment to Government
Account is chargeable. The Finance
Act 2010 amended interest rate wef 01.07.2010 and created a separate class of
default in respect of tax deducted
but not paid to levy interest at a higher rate of 1.5 per cent per month, i.e.
18 per cent p.a. as against 1 per cent p.m., i.e. 12 per cent p.a., applicable
in case the tax is deducted late after the due date. The rationale behind this amendment is that the tax
once deducted belongs to the government and the person withholding the same needs to be penalized by
charging higher rate of interest
Penalty equal to the tax that was failed to be deducted/collected or remitted is
leviable.
In
case of failure to remit the tax deducted/collected, rigorous imprisonment ranging from 3 months to 7 years and
fine can be levied.
Failure
to apply for TAN in time or
Failure to quote allotted TAN or Wrong quoting of TAN :Penalty of Rs.10,000 is leviable
u/s.272BB(for each failure)
Failure
to issue TDS/TCS certificate in
time or Failure to submit form 15H/15G in time or Failure to furnish statement
of perquisites in time or Failure to file Quarterly Statements in time: For each
type of failure, penalty of Rs.100/- per
day for the period of default is leviable.
Maximum penalty for each failure can be up to the amount of TDS/TCS. New Section
for Penalty for non submission of ETDS /ETDS return (section 271H)(applicable
from 01.07.2012)
Failure to deliver statement within time prescribed u/s 200 (3) or to the proviso to sub-section (3) of section 206C may liable to penalty which shall not be less than Rs. 10,000/- but which may extend to Rs. 1,00,000/-. No penalty if payment of tax deducted or collected along with fee or interest and delivering the statement aforesaid before the expiry of 1 year from the time prescribed for delivering the such statement. However No penalty shall be imposed u/s 271H if the person proves that there was reasonable cause for the failure.(section 273B)
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