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Interest on tds

chetan (accountant) (24 Points)

03 June 2016

Salary of April & May is paid on 31st May. TDS amount is 28,600/- (14,300*2) for these 2 months. If TDS is paid on 3rd june, how much interest to be paid ??

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5 Replies

Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 03 June 2016

there is no default in month of MAY 2016.

For April 2016 if u are not deducted the same in april then interest for MAY & JUNE @ 1% PM

and after deduction u are not deducted it ti got. so 1.5% PM for MAY & June.

Ihpeu deduct it properly. so intt.would be 14300*1.5%*2 = 429

vaibhav bansal (student) (25 Points)
Replied 03 June 2016

Why intt is for 2 mnth as we pay the tds for the mnth of apr in june

so delay is only for the 1 mnth so intt should be charge only for 1 mnth

Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 03 June 2016

Dear vaibhqav,

Int should be calculated for the month or part of month.

u have to pay the TDS upto 7th May but u dont

So intt for MAY & June applies.

Bhavesh (Service) (49 Points)
Replied 04 June 2016

Please read the section 192B once again, which is realted with the TDS ON SALARY. It say TDS to paid on payment basis. so in the above case there ia no default for the month of April. As u are paying april salary in the month of may. so liability occurs in the month of may.The limit is 7th June.
so no need to pay any interest.