Tds deduct on lower rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2015 Dear expert.
mistakenly i have deduct tds as per sec.194j which is allowed 10% but wrongly i have deducted 2%.

now i will have pay any interest or penalty.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 February 2015 You have to pay interest @1.5% on the amount of Short Deduction for the delayed period.
.
Example-
Amount Paid/credited on 31-10-2014 Rs. 100000 on which applicable TDS Rate is 10%.
.
On Short Deduction of Rs. 8000, you have to pay interest @ 1.5% for 5 Months (Oct, Nov, Dec,Jan, Feb).
.

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CA ANILKUMAR B.COM ACA DISA

CA ANILKUMAR B.COM ACA DISA (Querist)
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01 February 2015 For short deduction interest is @ 1% per month or part of the month. 1.5% is for late payment.

@VaibhavJ

@VaibhavJ (Expert)
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01 February 2015 Refer for details>

http://taxguru.in/income-tax/short-payment-short-deduction-tds-defaultsproblems-solutions.html

Thanks!!
@VaibhavJ

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 February 2015 Yes. Interest to be paid @1% per month or part thereof for late deduction of TDS. 1.5% is for late deposit of TDS i.e., when TDS is deducted but not deposited within due date. So you need to deposit the shortfall amount along with interest @1% per calender month.

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2015 Respected all expert.
the bill amount was 50000/- it was professional service bill which allowed 10% deduction. but i have deducted only 2% only 2000/- instead of 5000/-

my Query is. i had deducted short. 3000/-
will i have to pay only 1.5% PA interest on this short amount. or have to pay this 3000/-
amount also.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 February 2015 Obviously you have to pay Rs 3000 being the amount of short deduction but this needs to be deposited along with interest for short deduction of TDS @1% per month or part thereof.