Administration Manual - B.E.S.T. Undertaking.

date of payment) shall be liable to pay simple interest @ 15% p.a. on the
amount of such payable amount from the date of which tax was required
to be remitted under section 201 sub section (1A).
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Section 271 C of the Income tax Act lays down that if employer /
person fails to deduct tax at source he shall liable to pay by way of
penalty a sum equal to the amount of tax not deducted by the him.
Further, section 276B lays down that, if a person fails to pay the amount
of tax to the credit of Central Government within prescribed time limit,
he shall be punishable with rigorous imprisonment for a term, which shall
be between 3 to 7 years.
Furnishing of certificate for TDS
Income paid to the income tax authorities is deemed as “TDS”
from salaries of the employees. Accordingly to the provision of section
203, employer is required to furnish a certificate to employee i.e. payee
for deducting tax at source and specify therein the amount of tax deducted
/ remitted, particulars of gross income, particulars of permissible,
deduction particulars of rebate given on tax taxable income etc. This form
is known as form No 16 or TDS certificate.
Alongwith Form 16, Form 12BA stating the nature and the value of
perquisites provided by the employer in case Employees, whose salary is
above Rs.1, 50,000/-.