Tds

This query is : Resolved

Prasanna Bhat (Querist)
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16 August 2010 If there is delay in tds remittance of non salary like contractors, professional etc by 1 or 2 days is there is any interest on it pls let me

VINOD ARORA

VINOD ARORA (Expert)
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16 August 2010 yes, as per recent amendments, interest @1.5% pm or part thereof is payable.

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
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16 August 2010 If TDS is not deposited within due date, you will have to pay interest.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 August 2010 Even for 1 or 2 day delay you will have to pay 3% interest. Interest is calculated from the date of deduction till date of payment.

Say TDS deducted on 25th July

Due Date 7th August

TDS deposited on 8th August.

You will have to pay interest @1.5% for two months.
Apart from that penalty u/s 221 to the maximum of TDS amount may also be levied.