Interest on tds

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parteekjain (Querist)
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20 February 2013 1. As per income tax act an assesse has to pay interest @1% p.m. if he delays in deduction of TDS and has to pay 1.5% if he delays in deposit of TDS after deduction. I have a doubt that if assesse has made a delay in deducting/debiting the TDS in party a/c but he has deducted it in the same month. e.g. if He has one bill dated 01.04.2012 and other bills of 05.04.2012 or 20.04.2012 and he has deducted TDS on total amount liable to TDS during the month,but with single entry and that is also at the month end i.e. 30.04.2012. Then if such case has fallen under the category of late deduction of TDS for the purpose of interest calculation?

2. Further If he has deducted TDS late i.e. in the subsequent months and has also made default in depositing such late deducted TDS. Them from which date assesse will be liable to 1.5% interest i.e. either from the date of credit of the bill or from the date on which the TDS is deducted?

Thanks in advance . Quick reply is appreciated.

Guest

Guest (Expert)

20 February 2013 In case 1. the due date for deposit shall be 7-5-2012. If the deductor deducts and deposits the tax deducted before 7-5-12 then no default is there.

For case no. 2, 1% till deduction of tax and 1.5% from deduction till deposit of tax.

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