Interest on tds

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Arif Ali (Querist)
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29 November 2011 If TDS deduction date is 5.10.11 and we deposit the TDS amount on dt.10.11.11, then interest will be calculated for how many month?

PLZ help

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 November 2011 two months

Arif Ali

Arif Ali (Querist)
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29 November 2011 Sir, why two months?
there is rule that TDS shall be deposited within 7 days of following month for last months deduction.
so in this case, TDS deposit date shall be 7.11.11, but we are depositing on dt.10.11.11, so one month interest should be charged.

plz clarify this.

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Arif Ali

Arif Ali (Querist)
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Arif Ali

Arif Ali (Querist)
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Arif Ali

Arif Ali (Querist)
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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 November 2011 Correct Reply given by the expert. Interest will be applicable for 2 months.

See below link for more clarification---

https://www.caclubindia.com/experts/tds-577865.asp

https://www.caclubindia.com/articles/a-day-s-delay-in-tds-remittance-interest-upto-3--6580.asp

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 November 2011 Interest payable from date of deduction.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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29 November 2011 Yes. That is right that interest payable only when not paid before 7th of following month. But calculation to be made from month of deduction.

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