Tax Deducted at Source (TDS)

Failure to deposit timely and correct Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) will now attract a penalty ranging from Rs. 200 to Rs. 1,00,000 by the Income Tax department.

According to the new instructions issued, a deductor, either government or private, will have to submit a "compulsory" fine of Rs. 200 for delay in filing either TDS or TCS every day beyond the stipulated date of remittance of these category of taxes.

Similarly, the penalty would be between Rs. 10,000 to Rs. 1,00,000 for furnishing incorrect information or failure to file the collection statement within the due date

Note
During financial year 2012-13, Rs. 2,30,188 crore tax was collected under the TDS category, while the total direct taxes collections stood at Rs. 5,58,970 crore.