Friday 29 May 2015

Due Date to issue TDS Certificates (Form-16 or 16A) is 30th & 31st May, 2015 Respectively to avoid Penalties.

As per the circular of CBDT, due date to issue TDS certificates i.e. Form-16 or Form-16A is 30th May or 31st May, 2015 for the Financial Year 2014-15 to avoid penalties.

Last date for issuance of TDS certificates for Q4 of Fin.Year 2014-15 are as under:
  1. Form 16A (Non Salary) - 30th May 2015
  2. Form 16 (Salary) - 31st May 2015


Delay in issue of TDS certificate shall result in penalty of Rs. 100/- for each day of default not exceeding amount of tax deductible/collectible.

Consequences of TDS defaults
Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit):

Default/ Failure
Section
Nature of Demand
Quantum of demand or penalty
Failure to deduct tax at source
201(1)
Tax demand
Equal to tax amount deductible but not deducted
201(1A)
Interest
@1 % p.m. of tax deductible
271C
Penalty
Equal amount of tax deductible but not deducted
Failure to deposit tax at source
201(1)
Tax demand
Equal to tax amount not deposited
201(1A)
Interest
@1.5% p.m. of tax not deducted
276B
Prosecution
Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine
Failure to apply for TAN No. u/s 203A
272BB
Penalty
Rs. 10000
Failure to furnish prescribed statements u/s 200(3)
272A(2)(k)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to issue TDS certificate u/s 203
272(A)(g)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount.
Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C)
272(A)(i)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to mention PAN of the deductee in the TDS statements and certificates
272B
Penalty
Rs. 10000


If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.

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