Interest on delayed deposit tds
This query is : Resolved
CA Abhishek Pal
(Querist)
17 September 2011
most urgent
plz give me advice.
If we credited RS 100000/- as interest on 31st March & TDS deducted of Rs. 20600, due date of deposit of TDS on it 31st May, but not paid & actully paid on 19 Sep. What will rate of Interest charged on TDS amount.
plz give me advice.
If we credited RS 100000/- as interest on 31st March & TDS deducted of Rs. 20600, due date of deposit of TDS on it 31st May, but not paid & actully paid on 19 Sep. What will rate of Interest charged on TDS amount.
Hari Beldona
(Expert)
17 September 2011
Interest is chargeable @ 1.50 per cent for every month or part of the month ,means full month interest will be charged for fraction period of month (With effect from 01/07/2010)
CA Navin Jain
(Expert)
17 September 2011
first i would like to clearly that tds rate on interest is @ 10%, and due date is 30 April if tds has deducted during the month of march.
Interest on tds is calculated 1.5% per month or part of the month, hence in your case interest will be calculated for 7 months.
Interest on tds is calculated 1.5% per month or part of the month, hence in your case interest will be calculated for 7 months.
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Hari Beldona
(Expert)
17 September 2011
1.All the TDS deductions made during a month are to be paid on or before7th of the next month.
2.As per your query due date is 7th April.
3.Interest is to be paid on 6 months (April to September- both months are inclusive)
4.Interest on late payment of TDS is not allowable as it is not business expenses.
2.As per your query due date is 7th April.
3.Interest is to be paid on 6 months (April to September- both months are inclusive)
4.Interest on late payment of TDS is not allowable as it is not business expenses.
17 September 2011
I have a different observation on the rate of interest to be charged u/s 201(1A) of the IT Act,1961.
In the cited situation, interest is to be charged @ 1% from 31st March to 30 th June (period of levy 4 months) and @1.5% from 1st July to 19th September(period of levy 3 months).
Thus total period of levy is 7 months.
In the cited situation, interest is to be charged @ 1% from 31st March to 30 th June (period of levy 4 months) and @1.5% from 1st July to 19th September(period of levy 3 months).
Thus total period of levy is 7 months.
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