Goods & Service Tax (GST) 14 October 2026
Common TDS Compliance Failures and Their Tax Consequences
The article outlines frequent errors in Tax Deducted at Source (TDS) filing, such as missing PAN details, incorrect deduction rates, delayed deposits, and failure to issue TDS certificates, explaining how each lapse can trigger penalties, interest, and increased tax liability for deductors and payees.
Key TDS compliance pitfalls
- Missing or incorrect PAN of deductee leads to higher tax deduction and penalty.
- Using wrong deduction percentage results in demand notices and interest charges.
- Late deposit of TDS to the government attracts a 1.5% per month interest and possible prosecution.
- Failure to issue TDS certificates within the stipulated time forces deductors to pay additional fines.
For detailed guidance and the latest GST registration changes, see the original article here.
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