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?

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.