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Tds late payment interest (Income Tax)

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This query is : Resolved



( Author )
11 April 2012

I have paid TDS for the month of April 2011 in 30th June 2011. What will be the period for calcaulating interst is it for 2 month rate is 3% or 3 month rate is 4.5%, pls guide.


CA Kishore Tallam

( Expert )
11 April 2012

It is 1.5% p.m or part there of. Hence it will be 3% for delay of 2 months.


CMA. CS. Sanjay Gupta

( Expert )
11 April 2012

3 months i.e. 4.5%.

Its 1.5% per month or part thereof. So if not paid by 7th Interest will be considered from month or part in excess thereof. So For April to June 3 months and interest will be 4.5%.


Mihir Doshi

( Expert )
11 April 2012

Agree with experts. Its 1.5% per month or part of month.


murtaza

( Expert )
11 April 2012

agree with experts, 1.5% for 3 Months


CA. SHIVA SHANKARA R. SHETTY

( Expert )
11 April 2012

April month TDS shall be remitted to Govt, 7th of next month. So, May 7th is the due date for payment of April TDS.
If not paid on due date, interest will be charged at 1.5% per month or part there of. So, default is only 2 month, i.e., may and jun. Therefore, interest will be charged @3%


CMA. CS. Sanjay Gupta

( Expert )
11 April 2012

Disagree. Due date 7th will be considered only if paid in time if paid after due date period of default will be calculated from the date of deduction. And therefore interest need to be paid for 3 months.

See below link for more clarification---

http://www.caclubindia.com/experts/tds-577865.asp

http://www.caclubindia.com/articles/a-day-s-delay-in-tds-remittance-interest-upto-3--6580.asp


CA Kishore Tallam

( Expert )
12 April 2012

Agree with Mr. Sanjay its for 3 months i.e. from the date of deduction to date till it is paid or part there of. Hence, it will be for 3 months.
Refer Sec 206(1A)(ii) for details.


murtaza

( Expert )
12 April 2012

I agree with both experts,

1 day late will count into month

Dept. will clearly upload default status which is calculate penalty/interest from deduction to deposit


CA. SHIVA SHANKARA R. SHETTY

( Expert )
13 April 2012

Mr. Kishore.

Kindly tell us, where is the sec. 206(1A)(ii). We are unable find this section in the http://law.incometaxindia.gov.in/DIT/Income-tax-acts.aspx


Anand

( Expert )
05 May 2012

if it is TDS for salary of April which has been paid in May then liability for 2 months only coz in case of TDS on salary unlike other sections libillity to pay arises not at the time of Provision but at the time of payment..

Correct..???

Please rectify me if i am wrong..


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