Late fees TDS Interest


This query is : Resolved 

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This discussion clarifies the correct journal entry for late fees and interest related to Tax Deducted at Source (TDS). The expert confirms that interest on TDS should be debited to the 'Interest on TDS' expense account. Simultaneously, the bank account should be credited as this represents an outflow of funds from the business organisation.

21 February 2020 Dear Expert,
How can we pass Late interset tds journal entry

21 February 2020 Interest on TDS a/c Dr.
To Bank a/c

05 May 2020 Yes...Interest on TDS needs to be debited as it is an expenses for the business organisation and Cash/Bank needs to be credited.


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