Consequences of
failure to deduct or pay.92a
201. 93[(1) Where any person,
including the principal officer of a company,—
(a) who is required to deduct any sum in
accordance with the provisions of this Act; or
(b) referred to in sub-section (1A) of section 192, being an employer,
does not deduct, or
does not pay, or after so deducting fails to pay, the whole or any part of the
tax, as required by or under this Act, then, such person, shall, without
prejudice to any other consequences which he may incur, be deemed to be an
assessee in default in respect of such tax:
Provided that no
penalty shall be charged under section 221 from
such person, unless the Assessing Officer is satisfied that such person,
without good and sufficient reasons, has failed to deduct and pay such tax.]
94-99[(1A)
Without prejudice to the provisions of sub-section (1), if any such person,
principal officer or company as is referred to in that sub-section does not
deduct the whole or any part of the tax or after deducting fails to pay the tax
as required by or under this Act, he or it shall be liable to pay simple
interest,—
(i) at one per cent for every month or part of a
month on the amount of such tax from the date on which such tax was deductible
to the date on which such tax is deducted; and
(ii) at one and one-half per cent for every month
or part of a month on the amount of such tax from the date on which such tax
was deducted to the date on which such tax is actually paid,
and such interest shall be paid before furnishing the
statement in accordance with the provisions of sub-section (3) of section 200.]
(2)
Where the tax has not been paid as aforesaid after it is deducted, 1[the amount of the tax together with the amount
of simple interest thereon referred to in sub-section (1A)] shall be a charge
upon all the assets of the person, or the company, as the case may be, referred
to in sub-section (1).
2[(3) No
order shall be made under sub-section (1) deeming a person to be an assessee in
default for failure to deduct the whole or any part of the tax from a person
resident in India, at any time after the expiry of—
(i) two years from the end of the financial year
in which the statement is filed in a case where the statement referred to in section 200 has been filed;
(ii) four years from the end of the financial year
in which payment is made or credit is given, in any other case :
Provided that such order for a
financial year commencing on or before the 1st day of April, 2007 may be passed
at any time on or before the 31st day of March, 2011.
(4) The provisions of sub-clause (ii) of
sub-section (3) of section 153 and of Explanation
1 to section 153 shall, so far as may, apply to
the time limit prescribed in sub-section (3).]