Home > Experts > Income Tax > Interest on tds late payment


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Interest on tds late payment (Income Tax)

Report Abuse
This query is : Resolved


( Author )
21 May 2012

If TDS is deducted on 30-04-2011 u/s 194J
and the payment of TDS is to be made on
24-05-2012.

Then interest @1.5% p.m will be calculated for

a) 14 months i.e April 2011 to May 2012
(taking 1 day as part of the month or thereof)

b) 13 months i.e May 2011 to May 2012 because due date for same was 07-05-2011.



Siddhartha Bhardwaj

( Expert )
21 May 2012

Interest is payable fro the due date of payment to the actual date of payment.

Accordingly, iterest shall be payable for the period 8th May, 2011 to 24th May, 2012.

Accordingly interest shall be payable for 13 months.


Lokesh Bazaj

( Author )
21 May 2012

But Sir the law says this:

at one and one-half per cent. for every month or part of a month
****************************
on the amount of such taxfrom 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.”.



Siddhartha Bhardwaj

( Expert )
21 May 2012

Yeah sorry, got a little confused.

Interest shall be payable from the date on which such tax was deducted to the date on which such tax is actually paid.

Accordingly period shall be 30.04.2011 to 24.05.2012, i.e., 14 months.


CA CS Amit S. Kedia

( Expert )
21 May 2012

Mr. Lokesh, it is better to deduct & pay the TDS on same day only so that interest will be charged @1% only.


Lokesh Bazaj

( Author )
21 May 2012

@ CA Amit ji so is it resolved that 14 months of interest has to be paid or ur view is different ?


Aditya Maheshwari

( Expert )
21 May 2012

If TDS has been deducted at the time of making payment to the party then interest chargeable for 14 months i.e April 2011 to May 2012 @ 1.5%.


CA CS Amit S. Kedia

( Expert )
22 May 2012

interst will be charged for 14 months @1%.


CA CS Amit S. Kedia

( Expert )
22 May 2012

If the TDS is already deducted at the time of payment then TDS @1.5%


Previous

Next

You need to be the querist or approved CAclub expert to take part in this query .


Click here to login ( Members Login ) now


Similar Resolved Queries :












submit










Quick Links





back to the top