tds not deposited

[manish khawas]

what would be the penalty if credit has been given to the party and tds also deducted in the books but payment has not been done to the party?

[CAGOPALJI AGRAWAL]

Penalty for the same is prescribed u/s 271C which is equal to amount of tax deductible. The assessee would be treated in default and liable to tax and interest. Please also note that the law stipulate the prosecution also.

AI Summary

Penalty for failure to remit deducted tax may equal the tax amount, with default, interest and possible prosecution. Failure to remit tax deducted at source after accounting for TDS in the payer's books attracts a penalty equal to the amount deductible; the payer is treated as in default and remains liable for tax and interest, and prosecution is a possible enforcement measure.