Tds
This query is : Resolved
04 August 2012
Is interest Payable for less deuction and payment of tds ? if interest is applicable ,at what rate interest is applicable and interest to be calculated till what period ?
04 August 2012
In case of less deduction of TDS , your expenditure will be proportionately disallowed hence it is better to deduct the balance amount of TDS or full TDS and get it deposited.
.
Interest Rate is 1.5% for the month or part of the month which is applicable from the date of deduction to the date of deposit.
.
However, interest @ 1% is payable from the date of TDS Deductible to the date of TDS Deducted. But, W.e.f 1-7-2012, Payment of interest is required from the date of deduction to the date of e-tds return filing.
.
With an example the things will become clearer-
Suppose -Amount has been credited or paid (which ever is earlier) to the deductee on 05.04.2012. TDS is being deducted today on 04.08.2012,
.
Then interest @ 1% (one percent) is payable for 5 months. You have to file the Return upto 31.08.2012.
.
If you deposit the amount today itself you need not to pay interest @ 1.5%.
.
It is advisable to make the late TDS deduction entry on the date of deposit itself.
.
But if you deposit the amount on 08.08.2012, by deducting the TDS today, you have to pay additional interest of 1.5%.
.
So, in TDS matters it is always advisable to -
1. Deduct TDS on time and deposit it.
2. In case of late deduction, make TDS entry on the date of deposit of tax and file the return within the same month.
.
.
.
Interest Rate is 1.5% for the month or part of the month which is applicable from the date of deduction to the date of deposit.
.
However, interest @ 1% is payable from the date of TDS Deductible to the date of TDS Deducted. But, W.e.f 1-7-2012, Payment of interest is required from the date of deduction to the date of e-tds return filing.
.
With an example the things will become clearer-
Suppose -Amount has been credited or paid (which ever is earlier) to the deductee on 05.04.2012. TDS is being deducted today on 04.08.2012,
.
Then interest @ 1% (one percent) is payable for 5 months. You have to file the Return upto 31.08.2012.
.
If you deposit the amount today itself you need not to pay interest @ 1.5%.
.
It is advisable to make the late TDS deduction entry on the date of deposit itself.
.
But if you deposit the amount on 08.08.2012, by deducting the TDS today, you have to pay additional interest of 1.5%.
.
So, in TDS matters it is always advisable to -
1. Deduct TDS on time and deposit it.
2. In case of late deduction, make TDS entry on the date of deposit of tax and file the return within the same month.
.
.
Message likes :
1 times
04 August 2012
Thanks sir for your reply.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 270A penalty
- GST Registration Application -Rejected
- GSTR 1- Amend Credit Note
- GSTR 9C- Table 9
- Tax liability on gift amount given to blood relation
- International transfer pricing- -> father entity vs son entity ->WHERE NO mutual say in management
- Reimbursement of expense- GST applicable or not
- Acting as an Agent
- Form 104 stamp paper deed
- To Whom the Professional Invoice should be Raise
- Problem in filing Returns for International workers in EPFO
- Clarification for reversal of IGST on transfer of duty-free imported goods from EOU to DTA unit
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
