| Question And Answer | |
|---|---|
| Subject: | in Scrutiny reaction of AO on non deposit of tax |
| Category: | Income-Tax |
| Querist: | Kiran |
| Answered by: | Law Intern |
| Tags: | TDS deducted |
| Date: | August 3, 2025 |
Tax deducted on sale of property, but not deposited in government treasury by Assessee, now case was selected in Scrutiny. How AO will get this information and how he will react on this.
The AIS filed by the Registrar will disclose the transaction of sale and purchase. If tax is not deducted or deposited in the treasury, the AO will initiate proceedings under Section 201, demand payment of TDS with interest (1.5% per month), and may impose penalties under Sections 271C, 271H, or 234E. There could also be prosecution for non-deposit of the TDS.
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