Interest on late payment of TCS in COVID

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This discussion addresses confusion regarding the reduced 9% interest rate on late Tax Collected at Source (TCS) payments during the COVID period. While a 9% rate was announced, tax authorities are processing returns with a default interest calculated at 12%. The consensus suggests the 9% rate likely applies only to TCS collected between March 20, 2020, and June 30, 2020, and paid by June 30, 2020. For other periods, the standard 12% rate may still be applicable.

CA Garima Bhayana

CA Garima Bhayana (Querist)
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15 May 2020 In COVID interest on late payment of TCS is reduced to 9%. But when i filled TCS Return with caluculation of TCS Interest @ 9 % then return is processed with defaults and default is of less Interest deposited. They are calculating interest @12%p.a. How can we take benefit of 9% ? Should we deposit Interest demand raised by them?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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23 May 2020 I think if TCS/TDS is collected/deducted from 20th March 2020 and 30th June 2020 and paid by 30th June 2020 reduced rate is applicable otherwise it is normal rate as was applicable previously.

CA Garima Bhayana

CA Garima Bhayana (Querist)
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23 May 2020 Reduced rate is not applied on TCS which is collected on 30th March 2020.

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