Demand notice of interest on tds
Querist : Anonymous
See the matter in case of purchase of porperty:-
Date of Payment of Amount : 12/02/2016
Date of TDS deduction : 05/03/2016
Date of TDs deposit : 22/03/2016
now in this since tds is late deducted so 1% per month interest will be levied for one month only. and no interest on later deposit of TDS
but we have received the notice for 2 months delay in deduction of TDS.
Pls suggest me how can i reply this notice, no any option showing on TDS TRACES portal. Is there any option available online? Reply pls
Thanks
Querist : Anonymous
Sir can you please explain how 2 months calculate for delay in deduction of TDS.
Date of deduction should be 12/02/2016, but deducted on 05/03/2016, then here is one month only coming. How 2 months it is? please explain. There is only delay in deduction of TDS.
In other case, date of deduction should be 1910/2015 but deducted on 05/03/2016, so in this case delay in months of deduction I calculated 5 months and no any notice received for that.
As per Section 2001(1A), on late deduction of TDS, the interest will be charges @1% per month or part of a month on tax deducted from date on which Tax was to be deducted to date on which tax is deducted.
so as per this provision, from 12/02/2016 to 05/03/2016, it is only a part of month, even one month not completed, then how two months calculated.
please mention if any proviso of this provision there in Act.
Thanks, Waiting for your reply.
Querist : Anonymous
but see the my other case mentioned above. Here :-
Date of Deduction was to be : 19/10/2015
Date of Deduction : 05/03/2016
so here I calculated 5 months delay in deduction by applying the same provision. If I apply as you are saying then here should be 6 months delay.
Accordingly I paid the interest for 5 months and no any default & demand notice received from ITD u/s 200A. I got the mail that no any default found.
Now what is the provision exact? I am totally confused herein the calculation of delay months. Pls elaborate.
Thanks
Waiting for your reply.
Querist : Anonymous
and further in other case see:
Date of deduction was to be: 30/07/2015
Date of deduction : 05/03/2016
Here I calculated 8 months delay in deduction of TDS, If i calculate according you then it will come 9 months.
I paid interest according 8 months and got mail that no any default found.
What would you want to say?
Querist : Anonymous
In a case of CIT v. Laxmi Ratan Cotton Mills co. Ltd. [1974] 97 ITR 285 (ALL.), Allahabad High Court held that word 'month' must be taken as a period of thirty days.
so TRACES software is calculating the wrong, it is considering calendar month. It is incorrect way.
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