Interest on late payment of tds

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

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

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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)
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14 May 2014 This is the new rule by the Department

Rupesh Jain

Rupesh Jain (Expert)
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14 May 2014 it is error of TRACES
it calculate 1 month extra intt on late deposit

Sandeep Dharar

Sandeep Dharar (Expert)
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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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