What is the rate of interest on late payment of TDS relating to

F.Y.2012-13 ?????????

Pls Reply ASAP

Hi,

If Tds has been deducted but not paid within the due date interest will be calculated as follows.

It is 1.5 % per month or part of the month from the date of deduction to the date of payment.

totally agreee with above

Agreed with above

Bill amount is Rs. 1250567/-

date of bill is 09-05-2012,

Date of payment of bill amount without deducting TDS is 17-05-2012.

Help me in calculating interest...

should i consider the period from the date of bill or from the due date of depositing that TDS amount i.e from 07-06-2012 ????

Originally posted by : I.S.P.
	Bill amount is Rs. 1250567/- date of bill is 09-05-2012, Date of payment of bill amount without deducting TDS is 17-05-2012. Help me in calculating interest... should i consider the period from the date of bill or from the due date of depositing that TDS amount i.e from 07-06-2012 ????

You are supposed to calculate the interest from June 8th, since you are saying the TDS has not been deducted you are supposed calculate the interest @ 1% per month or part there of on the TDS Amount.. If you have not deducted and paid the TDS means, it will be disallowed in your income from business or profession as per section 40.

As per ur query incase the rate of TDS is 10% means, TDS amount will be Rs.125056/-, Interest will be @ 1% per month for one month (Incase Payment has been made within July 7th) Rs.1251/-.So u must pay Rs.126307/- as TDS including interest.

.

Agreed with M.Varalakshmi .

1% or 1.5% ???????????

Originally posted by : I.S.P.
	1% or 1.5% ???????????

Incase TDS deducted and paid the amount to the Party and does not remits the TDS to Central Govt. means 1.5%per month..

                                                                  and

Incase TDS not deducted but paid the amount to the Party including TDS means u'll be levied 1% per month instead of 1.5%per month

Actually these two rates about one thing, we are not supposed to hold others money.Incase you deducted TDS and didn't remit to Central Govt. means, you are holding other's money so u'll be levied 1.5% per month interest.

Incase if u paid the amount to party without deducting TDS means, you will be levied 1% per month as interest, for failure to deduct the TDS.

As per Section 201 of the Income Tax Act,1961, if a person fails to make payment of the TDS deducted as required under the Act,he shall be liable to pay interest as below: 

1.5 % for every month or part of a month on the amount of such tax from the date on which such tax was deducted t o the date when such tax is actually paid.

However, Interest is to be paid at the rate of 1% for every month or part of a month when TDS which is deductible is not deducted at all.