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Tax Expert - Answered on May 05, 2023

Mahesh Padmanabhan has specialised in payroll, personal and corporate taxation for more than two and a half decades, enabling him to provide practical, realistic and correct advice to his clients.
He is a member of The Institute of Chartered Accountants of India and has a degree in cost accounting from the Institute of Cost Accountants of India.
He is also a qualified information systems auditor. ... more
Asked by Anonymous - Apr 04, 2023Hindi
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Money

what will happened if any flat owner is regular income tax payer but not aware / knowledge about the TDS and purchased a higher value flat from builder without any TDS deduction?

Ans: Hi
Ignorance of law does not bring any relief to the flat owner. The penal consequences would apply in this case and the following provisions are applicable:

Penal Interest is applicable from the date on which the deduction was to be made. The rate of penal interest would be 1.5% p.m if the TDS was deducted but not paid and 1% p.m. if the TDS was not deducted.

Late Fee of Rs. 200 per day would be applicable from the due date for filing the TDS return in Form 26QB however this would be maximum upto the amount of TDS i.e. if the total TDS is say Rs. 1 Lakh and the late fee works out to Rs. 2 Lakhs then the late fee would be limited to Rs. 1 Lakh.

The above two amounts have to be paid along with the TDS amount while filing the Form 26QB

In addition to the above, if the TDS return has not been filed within a year then the Tax Officer could levy a penalty which could range between Rs. 10,000 (minimum) and Rs. 1 Lakh (maximum)
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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