Interest on tds
Querist : Anonymous
SO from which date the interest on tds shall be calculated ?
From 4th July or from 7th August ?
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
" From the date on which tax was deductible to the date on which tax is actually deducted ".
So , Should not the interest be calculated from 4th july in the above case ?
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
I have referred Ready Reckoner there the following has been written :
Rate of Interest Period
1 % From the date on which tax was deductible to the date on which tax is actually deducted
1.5% from the date on ehich tax was actually deducted to te date on which tax is actually paid.
Can you explain these two provisions with the help of an example please...
TDS would be deduct at the time of actual payment or credit in the books which is earlier.
For your understand i will explain you your doubt with the following example.
Assume according to the above provision you have to deduct TDS on 30-6-2012 and deducted TDS on the same date. So according to the TDS provision you have to pay TDS amount to the government on or before 7-7-2012. This is the actual procedure to follow.
Now our queries and doubts analysis.
You deducted TDS on 30-6-2012 but deposited TDS into the bank i.e remitted to the government on 5-9-2012 instead of 7-7-2012 in this case you have to pay the interest @1.5% p.m/part of the month from the next day of actual due date to the date of the actual payment i.e from 8-7-2012 to 5-9-2012 i.e you have to pay interest for July,August and September. (this is your question at first time)
Case 2: You deducted TDS on 31-7-2012 instead of on 30-6-2012 then you have to pay interest @1% p.m or part of the month from the date of actual deductable to the date actually deducted. So you have to pay interest from 1-7-2012 to 31-3-2012. I.e you have to pay interest from July 2012.
Now there is no confusion i think.
However words used by the author you referred reckoner is confusing and couldn't understand clearly.
His meaning is also correct because interest is payable per month or part of the month i.e eventhough one day exceeded for month then you have to pay interest for 2 months. Assume for you cases above you paid TDS to the government in the month of September for which it is deducted in the month of June so you should pay interest from July to September eventhough you paid it in September as well as you have due date upto 7th July you would be pay interest for total month of July and September so that wise the author used the words like that above. This is the inner meaning of the author words.
So don't go for confusion. Due to the payment of interest per month i.e irrespective of the days of delay so the words "interest would be payable from the day of the due date" and interest would be payable from the date of actual deducted" is both are same meaning.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
This is Delhi 's no ?
Querist : Anonymous
For example,where tax of Rs.10000/- was deductible in the month of April'10 was actually deducted only in the month of January'11, interest @1% pm shall be levied for 9 Months from May'10 to January'11 on Rs.10000/- if such deducted tax is deposited in month of April'11 then interest @1.5% pm shall be levied for 3 months from Februray'11 to April'11.
Here underlying words in the above example is "In the month" which gives the full strength to the provision.
OM SAI SRI SAI JAI JAI SAI
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