TDS RENT

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This discussion clarifies the interest payable on late TDS rent payments. Interest is calculated from the deduction date to the payment date. While a COVID-19 relaxation reduced the rate to 9% until June 30, 2020, normal rates apply thereafter. For a June deduction and August payment, three months' interest at 4.5% is payable.

arvind r shah

arvind r shah (Querist)
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25 July 2020 In above query due date for payment was 7th june he paid late 23.7.20.Is he liable for 2 months int?
Any relaxation due to covid 19 problem.

CA Parth Shah

CA Parth Shah (Expert)
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25 July 2020 interest is calculated from the date of deduction till the date of payment. also govt has provided relaxation till 30.06.2020 where in rate cut to 9%. after that normal rate applied... if deduction is on JAN AND PAYMENT MADE IN MARCH THEN 3 MONTHS INTEREST PAYABLE

GN Patankar

GN Patankar (Expert)
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02 August 2020 No relaxation , Date of deduction is June'20 & date Date of payment would be August hence interest will be 4.5% ( 1.5% per month for three months)

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