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Calculation of tds and interest on it

dgkumar (accountant) (51 Points)

16 August 2017

DEAR SIR,

I AM REQUESTING YOU TO GIVE ME YOUR VALUEABLE ADVICE ON CALCULATION OF INTEREST ON DELAYED PAYMENT OF TDS. FOR OUR ORGANISATION WE MADE AN AGREEMENT ON 1ST APRIL 2017 TO PAY RS.48,000/- RENT TO OWNER OF PROPERTY. FOR THE APRIL RENT WE PAID ON 18/5/17 RS.43,200/- (BUT WE DIDN'T PAY TDS RS.4,800/-), FOR MAY RENT WE PAID ON 16/06/17 THEM IN FULL RS.48000/-( WE DIDN'T DEDUCT) IN THE SAME WAY FURTHER MONTHS ALSO WE DIDN'T DEDUCT. BUT NOW WE ARE DEDCIDED TO FOLLOW ITS RULES TO PAY TDS. PLEASE LET ME KNOW CALCULATION OF INTEREST ON LATE PAYMENT OF TDS.

THANKING YOU IN ADVANCE

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1 Replies

Michelle (Service) (297 Points)
Replied 17 August 2017

When TDS is not deducted – 1% per month or part thereof, for the period from the date on which TDS is deductible/collectible to the date on which TDS/TCS is actually deducted/collected.
When TDS is deducted but not paid – Interest at the rate of 1.5% per month or part thereof, for the period from the date on which TDS is actually deducted/collected to the date on which such TDS/TCS is actually paid.