Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2013 TDS Deducted on 8/01/2013 & it's Deposited on 09/02/2013 so how much Interest will be charged Please specify me with details .....

kodiya mohammed asif

kodiya mohammed asif (Expert)
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09 February 2013 deducted the tax,but paid after due date

Tax Deducted but deposited from the date of deduction of TDS to the date of deposit/Payment of TDS Interest Payable will be one and half per cent per month or part of month

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 February 2013 Dear Anonymous,

As Kodiya already mentioned, the interest is payable for every month or part of the month at 1.5% simple interest.

In your case,the interest shall be payable for 2 months.

You may refer section 201(1A)(ii) of the act.

Other experts may provide their opinion in case I am incorrect

CA Rinkal

CA Rinkal (Expert)
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09 February 2013 It's Simple dear...

You need to deposit the deducted amount within 1 week from the end of the month in which the deduction is made......

so your liability to deposit arises as on 07-02-2013, but you deposit it on 09-02-2013, so you need to pay a simple intrest @ 1.5%.

Thank you

@VaibhavJ

@VaibhavJ (Expert)
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16 October 2013 Hi

It would be 3% for two months.

Refer: https://www.caclubindia.com/articles/prosecution-and-interest-on-late-deposit-of-tds-18223.asp

Thanks//VaibhavJ

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 October 2013 Rinkal Bhai, you are correc that it shall be @ 1.5 % but the important question is for how many months and that is 2 months

CA Pallav Singhania

CA Pallav Singhania (Expert)
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16 October 2013 Agree with Expert,

For delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.5% p.m

In your case 1.5 percent interest for 2 months.. as the days exceeded 30 days...

@VaibhavJ

@VaibhavJ (Expert)
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16 October 2013 Also for information..

If there was delay in deduction than interest is also payable @1%.