Interest on tds

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C.A.Anshu

C.A.Anshu (Querist)
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09 February 2012 We have not deducted TDS of a party as the estimated payment during the year was below Rs 30000, but in December the payment exceeded Rs 30000, we deposited TDs on whole amount.

Now, we have received Income Tax notice demanding Interest on the same. Is interest to be paid?

kartik_somu

kartik_somu (Expert)
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09 February 2012 yes.

interest will have to be paid from the date on which TDS should have been deducted if TDS was deducted from the beginning.

Hari Wadhwa

Hari Wadhwa (Expert)
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09 February 2012 Read the similar thread discussion as well: -

https://www.caclubindia.com/forum/details.asp?mod_id=187893&offset=1

C.A.Anshu

C.A.Anshu (Querist)
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13 February 2012 Is revised return required to be filed or just to pay the Interest demanded by the authority sufficient?

Ankit

Ankit (Expert)
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16 February 2012 If the payment is covered u/s 194C i.e. TDS on contractrs, then there is no liablilty to deduct TDS, however if its covered u/s 194J i.e. TDS on Professionals, then TDS will be due on the date of crossing the statutory limit & No int is payable for late deduction as earlier TDS was not due, however TDS has to be deducted o full amt...