deposit of TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2011 One of our client has recd a notice of interest on TDS.

Payment dt 07/08/2009
Date of deposit 11/09/2009

Since tax is to be deposited within a week of the month of deduction, interest of 1 month should be charged, however a demand of 2 months has been raised by IT deptt, Please advise.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 May 2011 Here 1 month has been crossed and hence 2 months interest will be levied.
Your due date was 7th September, deposited on 9th September.

7th Aug to 7th Sep 1 month
since it exceeded that 2 month interest is applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2011 There will not be any interest till 7 sept since due date is 7 sept hence there should be one month interest in case deposited after 7 sept before 30 sept.

pl advise

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 May 2011 Yes there will not be any interest till 7th September but if deposited on 9th you will have to pay 2 months interest since more than a month has elapsed from the date of deduction.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 May 2011 https://www.caclubindia.com/articles/a-day-s-delay-in-tds-remittance-interest-upto-3--6580.asp

Also see article from above link for details.

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