Can appeal not to deduct TDS
Further, as a payee you can approach the payer for not deducting tax at source, however, for this, you will have to give a declaration in Form No. 15G/15H, as the case may be, to the payer, in effect. will have to be presented. The government states that after including the income on which tax is to be deducted, the tax on his estimated total income of the previous year will be nil. A deductor will face the following consequences if he fails to deduct TDS or after deducting it fails to credit it to the account of the Central Government as per IT Rules.
TDS is deducted under the rule
1. Rejection of Expenditure As per section 40(a)(i) of the Income-tax Act, any amount, other than salary payable to a non-resident outside India or to a non-resident, which is chargeable to tax in India, shall not be allowed as deduction. Will go If it is paid without deduction of tax at source, or if tax is deducted then you have to fill it by the due date of filing of return but, if tax is deducted or deposited in a subsequent year, then that Expenditure in the year will be allowed as deduction.
As per section 40(a)(ia), any sum payable to a resident, which is subject to deduction of tax at source, if paid without deduction of tax at source, or if tax is deducted but The return is not deposited with the Central Government by the due date of filing. But, where, in respect of any such sum, tax is deducted or credited in a subsequent year, the expenditure so disallowed shall be allowed as ‘deducted’ in that particular year. As per section 58(1A), as amended with effect from assessment year 2018-19, the provisions of sections 40(a)(ia) and 40(a)(iia) shall also apply in computing the income chargeable under the head. ‘Income from other sources’.
The company deposits to the government
Levy of interest As per section 201 of the Income-tax Act, if you fail to deduct tax at source or after deduction fail to credit it to the account of the Central Government, he will be treated as an assessee-in-default and ordinary is liable to pay interest, as mentioned herein: (i) for every month or part of the month on the amount of such tax at 1% from the date on which such tax was deductible This is how tax is deducted. (ii) at the rate of 1.50% for every month or part of a month on the amount of such tax from the date on which such tax was deducted, the date on which such tax was actually paid. 3. Recovery of fine A fine of an amount equal to the tax deducted or unpaid under section 271C may be imposed.