Prosecution for Default of Interest & Late Fees on TDS

[VARDHMAN DOOGAR]

Dear Experts,

Require your guidance on the subject topic in title.

Is there prosecution for of default of Interest on TDS & late fees as Section 276B states that prosecution for non payment of TDS, however in present case, TDS has been paid in each quarter with 2 months delay & there is demand of interest & late fees outstanding.

The amount of fees & interest not paid is Rs. 70 Lakhs which has accumulated from 7-8 Years & pertains to AY 2010-11 & further.

Kindly guide if there is any section for prosecution of such demand & compounding solutions if any?

AI Summary

Failure to remit deducted tax: prosecution applies only where deducted TDS remains unpaid, not for interest or late fees.
Prosecution for non-payment of deducted tax applies only where the deducted TDS has not been paid to government; if the TDS was ultimately paid late but interest and late fees remain outstanding, prosecution under the provision for failure to remit deducted tax does not extend to those interest and late fee liabilities. Penal provisions are to be strictly construed, so criminal liability requires express statutory coverage and cannot be implied for unpaid interest or late fees.