Interest on tds late payment

This query is : Resolved

srinivasan (Querist)
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25 November 2013
Bills Dates is 30/10/2013, the same day client has deducted the TDS but the client has paid the TDS 10/11/2013.

So, How much Interest client has to pay?

whether he has to pay the interest for 1 month @1.5% or

He has to pay the interest for 2 month @3%

Please Clarify

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 November 2013 As per TDS CPC, Interest for 2 months or 3% is required to be paid.
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Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 November 2013 agreed with Bafna Ji.

srinivasan

srinivasan (Querist)
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26 November 2013 In my case, date of deduction is 30/10/2013 and Payment of TDS is 10/11/2013.. so 10 days only delayed. It should be treated as 1 month as per sec 201(1A)of Income Tax Act, 1961

As per above said Section, Interest payable on Late payment of TDS is "From the date, on which the tax was to be deductible/deducted, to the date of actual payment."

Please explain briefly.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 November 2013 "At one and one half percent for month or part of every month" clause is there in the provisions of Section 201(1A)(ii).
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First Part of the month October Starts from 30.10 and ends on 31/10.
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Second Part of the month Starts from the first day of Nov. till the tax is being paid .i.e. up to 10/11/2013.
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This is a riddle or "Paheli". How 2 days can be converted into 2 months !!!!
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Message likes : 1 times

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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26 November 2013 Agreed with expert suggestions.

srinivasan

srinivasan (Querist)
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27 November 2013 Thanks lot Bafna Sir for your kind clarifications

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 November 2013 Clarification may be reasonable or of whatever kind but these provisions are very unreasonable and cruel.
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At the time of granting refund, similar provisions are to be inserted in the Act. So that the amount can reach to the real beneficiaries.
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