TDS MATTER REG.

[sk rahman]

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

AI Summary

Penalties for Late TDS Filing Explained: 20% Rate Without PAN, Disallowance Under Section 40(a)(ia) for Non-Deduction. A query was raised regarding the imposition of penalties for late TDS return filing and the non-submission of a contractor's PAN. The response provided clarified that if no PAN is available, TDS will be payable at a rate of 20%, and relevant interest provisions will apply. Additionally, the non-deduction of TDS will lead to disallowance of the expenditure under section 40(a)(ia) of the Income Tax Act.