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Interest on delay in deposit of tds for month of march

sachin (SERVICE) (31 Points)

24 December 2013

Dear Memers,

I have one query about interest on delay in deposit of TDS. Following are the details:

Date of dedcution of TDS 31.03.2013

Due date for Deposit of TDS: 30.04.2013

Date of deposit of TDS with Govt. : 01.05.2013

For above transactions, when i have generated Justification Report it shows interest of 3 months. So just ofr delay in 1 day resulted into huge interest for 3 months. Now, what is remedey and whom to approach for rectification of above?

Kinldy clarify teh same.

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5 Replies

Shubham Sarda (ARTICAL ASSISTANT) (63 Points)
Replied 24 December 2013

If there is any delay in depositing the amont of TDS intrest shall be charged @ 1.5% per month or part of month from the Date on which TDS was Deducted till the Actual Date of Payment. Therefore intrest shall be charged from 31/03/2013 to 01/05/2013 i.e 31 days which will be considered as 2 Months.

INTEREST MUST BE CHARGED FOR 2 MONTHS.THEREFORE IF JUSTIFICATION REPORT SHOWS INTEREST OF 3 MONTHS CONTACT NSDL FOR THE REQUIRED CORRECTION.

THANK YOU,

SHUBHAM SARDA

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Ankur (Professional) (95 Points)
Replied 25 December 2013

Interest chargeable from date of deduction not due date . So it is correct 3 months. There is nothing wrong since law is clearly specified.

Ankur (Professional) (95 Points)
Replied 25 December 2013

It was misconception about calculation of interest for tds. If u know how to operate your tds software it can generate interest payable and will show u 3 months

Shubham Sarda (ARTICAL ASSISTANT) (63 Points)
Replied 27 December 2013

BUT TO THE BEST OF MY KNOWLEDGE INTEREST WILL BE CALCULATED AS I HAVE MENTIONED. LIKE HERE DELAY IS BY 31 DAYS. SO 30 DAYS MEANS 1 MONTH AND REMAINING 1 DAY WILL AMOUNT 1 MONTH .HENCE 2 MONTHS.