: For Finance Professionals & Students

TDS Provisions, Compliances and Penalties

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Every person responsible for deduction of tax under Chapter XVII-B shall, in accordance with the provisions of Section 200(3), submit the following Quarterly Statements to the Director General of Income Tax (Systems) or the person authorized by the Director General of Income Tax (Systems), namely-

 1. Statement of tax deduction u/s 192 in Form No. 24Q.

2. Statement of tax deduction u/s 193 to 196D in –

 A. Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and

 B. Form No. 26Q in respect of all other deductees.

 It is, therefore advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

 Implications of Non or late filing of TDS statements

 1. For Tax payers:  Non/Late filing of TDS Statements results into the TDS Credit not being available to the deductees(employees/vendors) for claiming the amount of tax already deducted from the payments made to them besides generating correct TDS Certificates for them.

 2. For Deductors: In case of default on account of Non/late filing of TDS Statements, a fee shall also be levied on the deductor u/s 234E of IT Act which reads as under:

 Where a person fails to deliver or cause to be delivered a statement within the time prescribed in section 200(3) or section 206C(3), he shall be liable to pay, by way of fee, a sum of Rs.200/- for every day during which the failure continues.

Issuance of TDS Certificates downloaded from TRACES

 CBDT circulars 04/2013 dated 17.04.2013, CBDT Circular No. 03/2011 dated 13-5-2011 and CBDT Circular No. 01/2012 dated 9-4-2012 refer to Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System

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