Government revenue is collect in two ways. Direct tax is the first category, and indirect tax is the second. Both direct and indirect taxes are other names for these. The government uses TDS as an indirect taxing approach. And it stops tax fraud. TDS or Tax Deducted source is a fixed amount of the income withheld by the institution, and that money is a deposit in the government’s account. The person who pays tax is known as the payer in the official. While the person who collect taxes is known as the deductor. By logging into your income tax filing account, one can also view the details about the TDS credit in form 26AS. When purchasing a property, paying rent, or paying a salary to any person, TDS can deduct. So, it’s important for everyone that they know What is the TDS interest rate (TDS) alongside how to and when to pay it to the Income Tax Department.
Also Read:- Tax Updates 2022
What is the TDS interest rate- Tax Kundali
If a person who is liable for TDS deduction under the provisions set by the Income Tax Act fails to do so, then the interest and penalty can levied accordingly.
Interest Provision Under TDS:-
Following are the TDS defaults for which interest is payable:-
- Taxes are not pay after TDS is deduct from the government’s credit when the taxpayer fails to pay the whole or part of the tax.
- Non-deduction of TDS is accompanied by payment of interest at the rate of 1% for each month. Or part of each month between the date on which TDS was deducted. And the date on which TDS was paid.
How does TDS implementation work?
It is the responsibility of the person who deducts TDS for the following:-
- All the documents about TDS should include the obtained Tax Deduction Account Number.
- TDS should deducted at the applicable rate that is already decided.
- Within the specified due date, the TDS amount should deposited to the government.
- One must file TDS returns within the specified deadline.
TDS Late Payment Penalty
Is there a procedure for paying the TDS penalty?
- Access the income tax e-filing portal.
- Visit (incometaxindiaefiling.gov.in).
- You can pay your taxes using e-Pay by clicking the link in the left sidebar.
- You can find more information on NSDL’s website.
- The TDS penalty amount must filled in on Challan ITNS 281, along with the required details.
- By clicking on ‘Submit and Proceed.’ make a payment using the prescribed or chosen method.
In case of late filing of TDS returns, you will be charge an INR 200 per day penalty. If the loss continues, no matter how late the filing is, the maximum amount is equal to the amount of TDS deducted.
Tax Deducted at Source (TDS) is a tax deduct at the source that is suppose to deducted or paid when the transaction occurs. A penalty for not deducting or paying TDS is specified in Section 271C.
1. Late filing fee according to (Section 234E)
One who will have to pay INR 200 until the filling is done for the TDS return. If statement filing required for the TDS amount, the penalty should not exceed that amount.
2. Penalty according to (Section 271H)
If a TDS statement is not fill within the due date, the individual will have to pay a penalty of at least Rs 10,000 that may eventually reach Rs 100,000. Besides a late filing fee under Section 234E, this penalty is also impose under this section.
2. Penalty according to (Section 271H)
If a TDS statement is not file within the due date, the individual will have to pay a penalty of at least Rs 10,000 that may eventually reach Rs 100,000. Besides a late filing fee under Section 234E, this penalty is also impose under this section.
Conclusion
In this blog, you got information regarding TDS, such as What TDS is, how TDS implementation works, what are the interest provisions under TDS, the procedure by which you can pay your TDS, and the penalties you have to pay for late payment of TDS. Our certified tax consultants provide advice and solutions to complicated tax problems on TAX Kundali; you can access more information on TDS here.