There is no such type of interest on any short fall or NIL investment. Please confirm with CFO or you can forward that email to me for better reply.
My email I'd .com.
Interest on TDS declaration
Hi, I work for a pvt ltd firm. Recently I have submitted the TDS declaration. I recived a mail from CFO of the company stating that if we fail to make investments as pwr submitted declaration , applicable interest will be levied on us. Please confirm.
Asked 6 years ago in Income Tax
I am hearing this for the first time. There is nothing in income tax act as well as in practice which suggests charging of any interest.
This is because if you are not making investments then your Tax liability will change and hence interest will be applicable. And for furnishing wrong declaration you will be liable for penalty
There is no such thing like levying interest because you fail to do investment. You may want to share the exact wordings of the email so that we can clarify better. I am sure there is some misunderstanding.
From: HARISH-STELLAR Sent: Tuesday, May 15, 2018 1:26 PM To: RAVINDER-STELLAR ; MILI NAYAR-STELLAR ; PURAN- STELLAR ; ANIL KUMAR-STELLAR ; 'VIRENDER' Cc: SUBHASH- STELLAR ; Design-SGT ; SAMARVIR ; DINESH KUMAR Subject: Interest is applicable if investments are not made Dear All, FYI as per trial mail. Best Regards Harish Chander Singh From: DKu, Stellar Sent: Tuesday, May 15, 2018 1:18 PM To: HARISH SINGH ; Mili Nayyar Subject: Interest is applicable if investments are not made Harish, Please inform to staff that if they do not invest money as per their declarations, they have to pay INTEREST as applicable under income tax act . Best Regards Dinesh Kumar
Asked 6 years ago
Dear Ms. Jain, Can you please share a government issued document supporting this statement.
Asked 6 years ago
A copy of the mail shared.
Asked 6 years ago
Maybe the message is that if you do not invest as per declaration to the company, they may deduct lower tds than actually what you need to pay. And this will lead to not 100% of the tax being paid to the govt. before 31st march and hence interest u/s 234 A,B and C.
There may be a penalty as well if there is substantial part of tax not paid as advance tax.
Hope that clarifies.
There is no government issued document. It is the responsibility of employee to declare the true investments on the basis of which employer will deduct TDS. To safeguard the interest of the organization as there is no short deduction of TDS from employer side, your employer has the right to define the verification guidelines and more controls in addition to the income tax rules.
No such clause in income tax ..Employer cannot charge any interest on employee for not investing as per declaration.
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