TDS Interest rate for late payment
This query is : Resolved
04 May 2010
TDS deducted on March month and it will payble on or before 7th april so my query is suppose i m paying it on 05 may so int @1% pm should liable to payble but wht is period should considered for it whether
from 7 th april to 5th may
or from march to 5th may ?
from 7 th april to 5th may
or from march to 5th may ?
04 May 2010
pay int @1% pm or part of a month, so in your case 2% int on the amt of TDS
04 May 2010
Interest is attracted from the date of deduction till date of payment. It is March to May.
04 May 2010
Int is to be paid after the due date is over, ie. from 8th apr.30th apr & from 1st may to 31st may, even for one day delay you have to pay 1%.
04 May 2010
04 May 2010
04 May 2010
AGREE WITH EXPERTS.
04 May 2010
Section 201(1A) is relevant for calculation of interest and is reproduced : -
5[(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct 6[the whole or any part of the tax] or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at 7[8[twelve] per cent per annum]on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid 9[and such interest shall be paid before furnishing 12[the statement] for each quarter in accordance with the provisions of sub-section (3) of section 200].]
A bare reading makes it amply clear that the interest shall be payable from the date on which the tax was deductible and not from the due date.
Further, a month shall be taken to be 30 days, in terms of General Clauses Act.
5[(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct 6[the whole or any part of the tax] or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at 7[8[twelve] per cent per annum]on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid 9[and such interest shall be paid before furnishing 12[the statement] for each quarter in accordance with the provisions of sub-section (3) of section 200].]
A bare reading makes it amply clear that the interest shall be payable from the date on which the tax was deductible and not from the due date.
Further, a month shall be taken to be 30 days, in terms of General Clauses Act.
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