Applicability of Interest u/s 201(1A) when the TDS threshold is crossed.
This query is : Open
04 June 2025
Hi everyone,
I need some clarity on a TDS issue under section 194C for the financial year 2024-25.
A client made payments to a contractor as follows:
25,000 on 30th June 2024
25,000 on 30th September 2024
25,000 on 31st December 2024
and 35,000 on 15th March 2025
The total payment during the year comes to 1,10,000, which crosses the threshold limit of 1,00,000. u/s 194C TDS at 1% is being deducted on the full amount of 1,10,000 at the time of the last payment in March.
My question is — since the limit was crossed only at the time of the last payment and we are deducting TDS then, will interest under section 201(1A) be applicable for the earlier three payments?
Thanks in advance.
I need some clarity on a TDS issue under section 194C for the financial year 2024-25.
A client made payments to a contractor as follows:
25,000 on 30th June 2024
25,000 on 30th September 2024
25,000 on 31st December 2024
and 35,000 on 15th March 2025
The total payment during the year comes to 1,10,000, which crosses the threshold limit of 1,00,000. u/s 194C TDS at 1% is being deducted on the full amount of 1,10,000 at the time of the last payment in March.
My question is — since the limit was crossed only at the time of the last payment and we are deducting TDS then, will interest under section 201(1A) be applicable for the earlier three payments?
Thanks in advance.
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