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

Enhanced surcharge on TDS may require recovery of shortfall with interest where surcharge was not deducted on large payments.
Where the entire payment was made to the deductee/payee on or before 5 July 2019 and there was no subsequent transaction in the financial year from which the shortfall could have been deducted, the payer will not be an assessee in default, although the surcharge shortfall is recoverable; for the second and third quarters the payer must pay the shortfall together with interest. Practitioners queried whether enhanced surcharge rates apply to residential individuals and HUFs for computing tax in 2019 20.