Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2016 Sir, I given payment of consultancy fees rs. 15000/- on may-16 without deducted tds. Now in July-16 He issues second invoice rs. 25000/-. Now limit over 30000. So I should be deduct tds on 25000 or 40000 amount. Interest would be liable for this or not on rs. 15000.

Rupesh Jain

Rupesh Jain (Expert)
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20 July 2016 you have to deduct tds on rs. 40000/- at that time....

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2016 Thanks Sir. But with interest on rs.15000 or without interest.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 For your case:

You **should deduct TDS on the entire Rs. 40,000** (Rs. 15,000 + Rs. 25,000) when you make the second payment or deduct TDS next time.

Regarding **interest**:

* Since you **did not deduct TDS on the first Rs. 15,000** at the time of payment (May-16), **interest will be payable on that Rs. 15,000** for the delay in deduction of TDS.
* The interest is calculated from the date on which the TDS should have been deducted (i.e., May-16) till the actual date when you deduct and deposit TDS with the government.

So yes, **you are liable to pay interest on the Rs. 15,000** because TDS was not deducted when it was supposed to be.

If you want, I can help you calculate the approximate interest or explain how to handle this in your TDS returns.

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