Tds penalty

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Gaurav Ladhha (Querist)
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08 July 2013 dear Sir,

I have taken an unsecured loan from market as on 1.7.12 on which i have to deduct tds @ 10 % on interest amount but i m not done anything and not deduct tds also. so can anyone tell me it is possible that now tds is to be deduct and if yes than what amount of penalty have to pay.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 July 2013 Deduct TDS now and submit the TDS amount along with penal interest on late deduction of TDS @1% of TDS amount and file the TDS return otherwise the amount of interest will be disallowed.

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Gaurav Ladhha

Gaurav Ladhha (Querist)
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08 July 2013 Can you please show me the calculation of tds penal ( In amount ) if possible... suppose the loan amount is 5 lakhs.
rate of interest 12%
TDS @ 10%

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 July 2013 Please tell me the interest amount and the date of crediting or payment of the interest amount.

Gaurav Ladhha

Gaurav Ladhha (Querist)
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08 July 2013 Interest amount RS 45000/- ( 500000*12%=60000*9/12)month
date of payment last date of every month

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 July 2013 Have you made the payment of interest? If not book the entire interest on 31st March to reduce the interest liability. Otherwise if you have month wise payment then you will have to calculate the interest taking into consideration month wise interest booked/paid.