The Revenue authorities have asked most of us to deduct taxes at source on certain payments at specified rates and remit into government revenue. If you happen to make any of these payments, you are expected to:
- Apply for a TAN
- Deduct tax at prescribed rates
- Remit taxes within prescribed time into Govt. Revenues
- Issue TDS Certificates
This is what happens if you dont follow their instructions:
If you dont apply for a TAN in time
- Penalty of Rs. 10,000/-
If you dont deduct:
- Penalty equal to the amount of taxes you failed to deduct.
After deduction, if you dont remit:
- Interest @ 12% for the period of delay
- Imprisionment from 3 months to 7 years with fine
After remittance, if you do not issue T.D.S certificate on time:
- Rs. 100/- for every day overdue.
Keep your friends informed!!!