Answer

1. F

   Facts

   Deductors who deduct but do not deposit pay interest at 1.5% a month. Late statements attract a ₹200 a day fee, and wrong or unfiled statements can attract penalty. Serious non-deposit can also lead to prosecution.

2. P

   Provisions and law

   • Sec 201(1A) (now Sec 398(3))Deductor pays interest of 1.5% a month for tax deducted but not paid to the government
   • Sec 234E (now Sec 427)Deductor pays a fee of ₹200 a day for late TDS statements, capped at the TDS amount
   • Sec 271H (now Sec 461)Penalty on the deductor for not filing a TDS statement or filing wrong details
3. A

   Analysis

   Sec 201(1A) (now Sec 398(3)) interest, Sec 234E (now Sec 427) fee and Sec 271H (now Sec 461) penalty all fall on the deductor. A polite letter pointing out that delay increases their cost often gets action. If tax was deducted and not deposited, the department treats it seriously. Keep your follow ups in writing for any grievance.

4. C

   Conclusion

   1. 1Send a written reminder listing the missing amounts.
   2. 2Mention the interest, fee and penalty that apply.
   3. 3Set a date for the correction.
   4. 4Escalate by grievance if the date passes.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.