• 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 7 months ago in Income Tax from New Delhi, Delhi
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.
Vivek Kumar Arora
CA, Delhi
1713 Answers
51 Consultations

5.0 on 5.0

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.
Abhishek Dugar
CA, Mumbai
3576 Answers
162 Consultations

5.0 on 5.0

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
Vidya Jain
CA, Kolkata
638 Answers
15 Consultations

4.8 on 5.0

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.
Nikhil Khanna
CA, Mumbai
1424 Answers
19 Consultations

4.8 on 5.0

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.
Nikhil Khanna
CA, Mumbai
1424 Answers
19 Consultations

4.8 on 5.0

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.
Vidya Jain
CA, Kolkata
638 Answers
15 Consultations

4.8 on 5.0

No such clause in income tax ..Employer cannot charge any interest on employee for not investing as per declaration.
Swati Agrawal
CA, Indore
689 Answers
1 Consultation

5.0 on 5.0

ok
Vivek Kumar Arora
CA, Delhi
1713 Answers
51 Consultations

5.0 on 5.0

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