Non Payment of TDS Interest

[venkatesh B]

Fact: If TDS is paid after the Due date Interest will be Levied on the same @1.5%PM or Part thereof, and these interest should be Paid while Paying the TDS.

Query: Interest is not paid while Paying the TDS to Department & Not even paid during the return Filing for the Quarter, What are the Implications?

[Ganeshan Kalyani]

This seems to be willfull attempt to evade payment of interest. Rigorous punishment of imprisonment provision may also apply depend upon the quantum of interest amount is involved. Thanks.

[venkatesh B]

Is there any Option to Pay the Interest with any penalities, in case of Non payment of interest occured

[KASTURI SETHI]

Sh.Venkatesh B,

Best reply by Sh.Ganeshan Kalyani, Sir. There is provision for penalty only but that is subject to quantum of non-payment TDS and interest. I am not expert in Income Tax. Sh.Ganeshan Kalyani knows the answer to your question. Any expert in the field of Income Tax can answer. It is very simple question.

[Ganeshan Kalyani]

Sir, the law is becoming more effective and stringent. It has been seen that department on willful default has taken the assesse under custody for recovery of tax. Hence it is better to pay interest and penalty. Thanks.

AI Summary

Non-payment of TDS interest risks classification as willful default, triggering penalties and possible criminal consequences. Non-payment of TDS interest does not extinguish the liability: interest at the prescribed monthly rate remains payable when depositing delayed TDS or during return filing and unpaid interest may attract administrative penalties; persistent or large-scale non-payment can be characterised as willful default exposing the taxpayer to potential criminal consequences depending on the quantum involved.