Budget 2022: Govt Proposes Hike In Penalty On Delay In TDS Certificate To Rs 500 From Rs 100/day

New Delhi: The government in Budget 2022 has proposed to hike the penalty to Rs 500 per day from Rs 100 per day for delaying in issuance of TDS certificates by deductors.

"Budget has proposed to increase the penalty for default in issuance of TDS certificate as per the prescribed timelines by tax deductor. The penalty has been increased from Rs 100 to Rs 500 per day for the period of delay. However, such penalty cannot exceed the tax amount deductible," ET quoted sayd Shalini Jain, Tax Partner, People Advisory Services, EY as saying.

Employers and financial institutions such as banks etc are required to deduct TDS on salaries/payments made to individuals. However, in several cases individuals too are required, by law, to deduct TDS on payments.

After deduction, every deductor of TDS is required to issue a TDS certificate to the deductee (person from whose income TDS has been cut).

Notably, delay in issuing the same beyond specified date attracts penalty.

Interestingly, any individual (except anyone subject to tax audit) is required to deduct TDS in certain conditions such as:

-- If monthly rent on house exceeds Rs 50,000

-- Buying an immovable property whose sale consideration exceeds Rs 50 lakh

--Payments made to contractors or professionals if the total payable amount exceeds Rs 50 lakh in a financial year.

Also read: Controversy around BharatPe Founder Ashneer Grover, wife gets thicker

Also watch: