Not deduction of tds , late deduction
DEBDULAL PATRA
(Querist) 29 July 2014
This query is : Resolved
Sir,
I have a query about TDS Not deducted FY (13-14) by a educational Institution for the FY they want to proper procedure of TDS
Is it possible what is the requirement , how much penalties will be charged.
Regards
DEBDULAL PATRA
V R SHROFF
(Expert) 29 July 2014
YOU NEED TO ASK YOUR TAX CONSULTANT/ CA
ajay sethi
(Expert) 29 July 2014
your CA can guide you in this regard
Anirudh
(Expert) 29 July 2014
Consequences of non-deduction of TDS.
1. Where TDS has not been deducted, then the expenditure will not be allowed as deduction. That means, because of disallowance of expenditure, the income will go up and consequently the amount of tax payable would go up. (Refer Sec. 40)
2. For failure to deduct tax at source, a sum equal to the amount of tax which a person failed to deduct will be levied as penalty. (See Sec. 271C)
The above are only broad answers. Only after exactly looking into each of the fact situation one will be in a position to correctly pin-point. As already advised herein above, please get in touch with a CA in your locality, if you already do not have a CA for your organization.
