Interest on tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2017 One of our client has neither deducted nor paid the TDS from past 1 year and now they want to pay the TDS. Kindly let me know what are the consequences for the same and whether we have to charge interest at the rate of 12% or 18%.

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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14 March 2017 They can pay TDS now, there is no problem and interest for late payment is to be charged in following manner and note that interest under income tax is charged on monthly basis and not on annual basis :-

- From date it is liable for deduction till it is actually deducted - 1% per month or part of the month (i.e part of the month is also considered as full month)
- From date of deduction till date of payment - 1.5% per month or part of the month.

I hope this will resolve your query.

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2017 Thanks for your reply.

Could you please let me know in my case whether the client has to pay interest @1% P.M or 1.5% P.M or both

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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14 March 2017 both

1% from date it is liable for deduction till date of actual deduction and
1.5% from date of deduction till date of payment

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2017 If we are deducting TDS today for all the previous months and depositing on today itself still we need to pay interest @1.5% P.M?

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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14 March 2017 In that case only 1% is required to be charged

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2017 Thanks for your information

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2017 can you please tell me whether i can pay single challan for all the previous months TDS?

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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14 March 2017 yes you can pay in a single challan

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2017 but usually TDS return has to be filed quarterly right? Then how to show this challan as this challan belongs to not ony Q4 but also for all the remaining quarters also

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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14 March 2017 TDS return is different thing you can deposit whole amount while depositing TDS but if nature is different, then you have to deposit multiple challans. Challan for TDS is ITNS/281 there you have to mention for which assessment year you are paying TDS

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2017 Thank you very much...

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