Direct Payment of Taxes if TDS is not Deducted by Deductor

• September 16, 2020
• CA Chandan Agarwal's Office

♣ Who does not want money in advance? – Everyone. Significant amendments are made every year in Income tax Act while declaring budget and major amendments are made in TDS section because government wants payment of taxes in advance and TDS is tool which aims to collect tax from the very source of income. TDS allows govt. to receive taxes in advance and also helps in regulating filing of income tax returns.

♣ The scope of TDS/TCS has been increased mainly to all the sources of income, be it salary, rent, capital gains on sale of property, interest, technical and professional services and many more. In budget 2020, it has also been extended to e-commerce transactions and foreign tax remittances also.

♣ In normal course liability to deduct TDS is imposed on person making payment for consumption of services or goods i.e. deductor. If deductor does not deducts TDS than he shall face interest, penalty and prosecution proceedings.

♣ But assessee is also not relieved from payment of taxes if TDS has not been deducted by deductor. Every person has to do his work with honesty whether other person does or not. You are always required to declare correct income whether TDS has been deducted by other person or not.

Read more on: https://taxguru.in/income-tax/direct-payment-taxes-tds-deducted-deductor.html