Surcharge on TDS

[gvenugopal g]

Dear Experts,

Please refer CBDT Circular No.8/2020 dated 13th April 2020 regarding enhenced surcharge on TDS/TCS.

In the financial year 2019-20 we didn't deduct surcharge for the payments exceeds ₹ 50 Lakh Kindly explain and clarify whether shortfall(surcharge @15%, 25% or 37%) will be be paid with interest if even three Qly TDS returns (APR' - DEC'19) filed within due dates?

Thanks & regards: G Venugopal

AI Summary

Clarification on Enhanced Surcharge Rates for TDS/TCS Payments Over 50 Lakh; CBDT Circular No. 8/2020 Explained A user inquired about the applicability of enhanced surcharge rates on TDS/TCS for payments exceeding 50 lakh, referencing CBDT Circular No. 8/2020. The user sought clarification on whether the shortfall needs to be paid with interest when TDS returns were filed on time. An expert clarified that if the entire payment was completed by July 5, 2019, and no further transactions occurred in the financial year 2019-20, the payer is not considered in default. However, the shortfall must be recovered with interest for the second and third quarters. The user further asked if the surcharge applies to individuals and HUFs for FY 2019-20.