TDS-201 — Assessee-in-default — failure to deduct or deposit TDS | IT / TDS | RushTax

Q: What is the deadline to respond?

You have 30 days from the date the notice is issued. The deductor is treated as an assessee in default. Recovery proceedings are initiated. The deductee's income is also assessed without credit for the undeposited TDS.

Explanation

Assessee-in-default — failure to deduct or deposit TDS

Section: 201 / 201(1A)

Reply required within: 30 days.

Consequence if ignored: The deductor is treated as an assessee in default. Recovery proceedings are initiated. The deductee's income is also assessed without credit for the undeposited TDS.

How to reply: Pay the outstanding TDS (if not yet deducted/deposited) plus interest under §201(1A). File the correction TDS statement. Respond to the notice with evidence of payment.

If ignored

The deductor is treated as an assessee in default. Recovery proceedings are initiated. The deductee's income is also assessed without credit for the undeposited TDS.

How to respond

Pay the outstanding TDS (if not yet deducted/deposited) plus interest under §201(1A). File the correction TDS statement. Respond to the notice with evidence of payment.

Deadline

You have 30 days from the date of issue to respond. Do not ignore — non-response triggers automatic consequences.

Related terms and sections

201 201(1A)assessee in default TDS not deducted TDS not deposited 1 percent interest 1.5 percent interest TDS notice