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TMI BlogSection 201 - Consequences of failure to deduct or pay TDSX X X X Extracts X X X X X X X X Extracts X X X X ..... educt the whole or any part of the tax or after deducting fails to pay the whole or any part of the tax, then, he shall be deemed to be an Assessee in Default in respect of the tax not so deducted or not to paid. Consequently he shall be liable to pay interest under section 220 and penalty under section 221 for being Assessee in Default. Section 201(1) Non-applicability of deeming provision. Any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to deduct and pay the tax. Interest Liability Section 201(1A): Late Deduction of TDS or Late Payment of TDS If any person, does not deduct the whole or any part of the tax within the time prescribed or after deducting fails to pay the tax within the time prescribed, he shall be liable to pay simple interest (i) at 1% for every month or part of a month on the amount of such tax from the date on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdance with the order made by A.O. in this regard. Provided that in case any person, 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 resident or on the sum credited to the account of a resident but is not deemed to be an assessee in default under the first proviso of section 201(1), then the interest under clause ( i ) shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mended vide Finance (No. 2) Act, 2024 w.e.f. 01-04-2025 No order shall be made under section 201(1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from any person, at any time after the expiry of six years from the end of the financial year in which payment is made or credit is given or two years from the end of the financial year in which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been deducted but not paid However, no time limits have been prescribed for passing an order under section 201(1) where: the deductor has deducted but not deposited the tax deducted at source, as this would be a case of defalcation of government dues, the employer has failed to pay the tax wholly or partly, under section 192(1A) , as the employee would not have paid tax on such perquisites, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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