Question

Explain the provision of the income tax act regarding the deduction of income tax at source. What is penalty for failure to deduct tax at source

Answer 1

As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. ... TDS is deducted irrespective of the mode of payment–cash, cheque or credit–and is linked to the PAN of the deductor and deducted.