TDS MATTER REG.

[sk rahman]

REGARDING IMPOSE OF PENALTY ON LATE TDS RETURN FILING REPLY FOR NON SUBMISSION OF PAN OF CONTRACTOR /DELAY

[CA Rachit Agarwal]

Simply TDS will be payable @ 20% in case no PAN available and interest provisions to apply accordingly.

Non deduction of TDS will attract disallowance under section 40(a)(ia) of the expenditure.

AI Summary

TDS on payments without PAN triggers higher withholding and interest; failure to deduct leads to expenditure disallowance. Payments to a payee who has not submitted PAN attract a higher withholding rate and applicable interest; late TDS return filing can attract penalties; failure to deduct or deposit TDS leads to disallowance of the related expenditure under section 40(a)(ia), alongside withholding and interest consequences for missing PAN.