1. Presentation on TDS

2. Assessee in default (Section 201)
does not deduct or
does not pay or
after so deducting fails to pay, the whole or any part of the tax

3. Consequences of Non-Compliance
Does not deduct/ Late deduction
Does not pay/ Late payment
Interest (S. 201)
1% p.m from deductible date to actual deducted date
1.5% p.m from deducted date to actual payment date
Penalty
Upto amount not deducted (S. 271C)
Upto amount not paid
(S. 221)
Imprisonment
(S. 276B) --
3 months to 7 years
and fine

4. Other Penalties for statement default
Nature of Default
Relevant Section
Consequence
Fees if fails in furnishing TDS/TCS statement
Section 234E w.e.f 01/07/2012
Rs 200 per day upto tax deductible or collectible amount
Fails to file TDS/TCS statement or
Furnishes inaccurate information
Section 271H w.e.f 01/07/2012
Rs 10,000/- to 1,00,000/-
Prior to 01/07/2012
S. 272A(2)(k)- Rs 100 per day upto tax deductible or collectible amount
Fails to file information
Furnishes inaccurate information as required u/s 195(6)
Section 271-I w.e.f 01/06/2015
1,00,000/-
Non issue of TDS/TCS Certificates
Section 272A(2)(g)
Rs 100 per day upto tax deductible or collectible amount

5. Closure of Short Payment/Deposit defaults
It arises in following cases:
when the amount of TDS deposited is less than the amount of TDS deducted,
when the tax in respect of deductees of higher amount is mapped against a Challan of lesser amount,
when there is an error in entering Challan details or due to some reasons, the Challan does not match with details of OLTAS.
RECTIFICATION:
In case of Challan mismatch:
Online without DSC- Tag the incorrect Challan with the Correct Challan
Offline- Correct the Challan details and file correction statement
In any other case:
pay the tax amount including interest u/s 201
file correction statement

6. Closure of Short Deduction defaults
It arises in following cases:
Invalid/Incorrect PAN: TDS is not deducted as per provisions of Section 206AA i.e 20% minimum
Lower Deduction: TDS is deducted below the rate as required.
e.g TDS 1% u/s 194C for other than Individual/HUF
RECTIFICATION:
In case of Invalid/Incorrect PAN (Only max upto 2 alphabets & characters allowed):
Online with DSC
Offline- Correct the PAN and file correction statement
In any other case:
pay the tax amount including interest u/s 201
file correction statement

7. Thank you
CA. Ankur Bansal Partner N A V & CO Chartered Accountants Chandigarh