Just want to know full details of Penalties and Interest rates applicable to TDS. Whether its for late filing, wrong filing etc.

Posted 2 years, 9 months ago by Rahul Rai


TDS laws are strict and have lot of interest or penalties if defaulted in complying with any of the provisions.

Interest on TDS is applicable in following situations:

  1. Late deduction of TDS
  2. Short deduction of TDS
  3. Late payment of TDS

Late filing fees is applicable if TDS quarterly returns are filed after due date. The fees is Rs.200 per day.

Consequence of non deduction of TDS is not allowing the expenses while filing the income tax returns.

Suppose, you have paid 1,50,000 for consultancy charges and did not deduct tds, in this situation the 1,50,000 paid for consultancy charges will not be allowed as expense while filing the Income tax returns.

Posted 2 years, 9 months ago by CA Pulkit Sharma


Thank you for clearing the doubts. TDS laws are really strict. One may end in paying high income tax if tds is not deducted.

The interest and late fee may be far more than actual TDS.

Posted 2 years, 9 months ago by Rahul Rai


Yes its adviced to Deduct the TDS on time at correct rates. File your quarterly returns on time to avoid late filing fee.

If you dont deduct tds, you have to pay tax on the entire tax. The expense disallowed ad to your income and 30% tax is payable in case of a company.

Posted 2 years, 9 months ago by CA Pulkit Sharma


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