Interest on late payment of tds

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2014 Dear Sir,
We have paid TDS amount for Dec'13 on 8.1.14, delayed by 1day(Actaul Due date is 7.1.14).Now they sent Notice by charging interest for 2 months on late payment of TDS. I contacted Traces,saying that interest chargeable for 2months only but not for 1 month. Kindly resolve my query.

Sandeep Dharar

Sandeep Dharar (Expert)

14 May 2014 Yes TDS will b deducted for 2 months.i.e,

1. Date of deduction.
2. Date of Payment.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2014 My actual deduction of TDS was 31.12.2013..how they calculated interest for 2 monhts.

Sandeep Dharar

Sandeep Dharar (Expert)

14 May 2014 This is the new rule by the Department

Rupesh Jain

Rupesh Jain (Expert)

14 May 2014 it is error of TRACES
it calculate 1 month extra intt on late deposit

Sandeep Dharar

Sandeep Dharar (Expert)

14 May 2014 Rupesh plz update it is not an error interest will b charge @1.5% for the month of deduction and late payment month. So it will b for 2 months.

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