TaxTMI 
TaxTMI 
Consequences of failure to deduct or pay
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....any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a ^19[payee] or on the sum credited to the account of a ^19A[payee] shall not be deemed to be an assessee in default in respect of such tax if such ^19B[payee]- (i) has furnished his return of income under section 139; (ii) has taken into account such sum for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:] ^16[Provided further that]....
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.... was deductible to the date of furnishing of return of income by such ^20B[payee].] ^22[Provided further that where an order is made by the Assessing Officer for the default under sub-section (1), the interest shall be paid by the person in accordance with such order.] (2) Where the tax has not been paid as aforesaid after it is deducted, ^10[the amount of the tax together with the amount of simple interest thereon referred to in sub-section (1A)] shall be a charge upon all the assets of the person, or the company, as the case may be, referred to in sub-section (1). ^18[(3) No order shall be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from ^23[any p....
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....on 8 of the Taxation Laws (Amendment) Act, 2003 w.e.f. 08-09-2003 before it was read as, "fifteen" Earlier, Substituted vide Section 74 of the Finance Act, 2001 w.e.f. 01-06-2001 before it was read as, "eighteen" And was Substituted vide Section 79 of the Finance Act, 1999 w.e.f. 01-06-1999 before it was read as, "fifteen" And was Substituted vide Section 24 of the Taxation Laws (Amendment) Act, 1984 w.e.f. 01-10-1984 before it was read as, "twelve" And was Substituted vide Section 25 of the Finance Act, 1972 w.e.f. 01-04-1972 before it was read as, "nine" And was Substituted vide Section 4 of the Taxation Laws (Amendment) Act, 1967 w.e.f. 01-10-1967 before it was read as, "six" 9. ....
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....b-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct ^6[the whole or any part of the tax] or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at ^7[^8[twelve] per cent per annum] on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid ^9[and such interest shall be paid before furnishing ^12[the statement] for each quarter in accordance with the provisions of sub-section (3) of section 200" 15. Inserted vide Section 79 of the Finance Act, 2012 w.e.f. 01-07-2012 15A. Inserted vide Section 79 of the Finance Act, 2012 w.e.....