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)
Follow

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 online

Aashok Kumar Sharma online

(Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now