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Charging of interest for late payment of tds deducted..urgen

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Rajesh (Querist)

21 September 2012 Dear Experts,
1)A company has lately paid the TDS for which it has deducted. Please tell me the section under which they have to pay interest because of delay in the payment of TDS to the Central Government A/c?
2) Even if they pay the TDS amount late by 2 days should they have to pay interest for one month? Please also quote the section for it.

Thanks & Regards,
Rajesh.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

21 September 2012 According to the Section 201(1A) you have to pay interest. As per this section

if an assessee is deemed to be in default u/s201(i.e not deducted TDS or deducted but late or deducted but not paid with in due date),interest shall be leviable u/s 201(1A) at the rate of.
a) 1% per month or part thereof for delay in deduction of tax; and
b) 1.5% per month or part thereof foe delay in remittance of tax so deducted.

So your case comes under the second proviso and such second proviso also answered your two questions.

OM SAI SRI SAI JAI JAI SAI

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