- Late Filing Fee under Section 234E
If a person fails to file the TDS/TCS return within the due date, then he shall be liable to pay Rs. 200 for every day during which the failure continues under Section 234E. The amount of late fees shall not exceed the amount of TDS, and it should be deposited before filing the TDS return.
- Penalty under Section 271H
If a person fails to file TDS/TCS return within the prescribed due date, then the assessing officer may direct such person to pay a penalty under section 271H. Minimum penalty can be levied of Rs. 10,000 which can go upto Rs. 1,00,000.
If a tax Deductor fails to deduct TDS or after the deducting the same fails to deposit it to the Government then he shall be liable to pay simple interest under Section 201(1A) at the rate of 1% or 5% for every month for such default (as per applicability)
- Disallowance of Expenditure
As per section 40(a)(i) of the Income-tax Act, any sum payable outside India or to a non-resident (other than salary) on which there is a liability to pay tax in India by the recipient, then it shall not be allowed to be deducted as expenditure if it is paid without deduction of TDS or if TDS is deducted but is not deposited with the Government till the due date of filing of return.