TDS-When bank strike-payment

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LAKSHMI NARAYAN B (Querist)

06 August 2009 Dear Experts,

Due to Bank Strike on 6th and 7th August, we are unbale to make TDS payment. Is interest payable on such delayed payment. Please quote the relevant section or case law applicable in such situation.

Thanks & Regards

Lakshminarayan.B

Guest

Guest (Expert)

06 August 2009 No, you are not liable to pay any interest on such payment. As requested, relevant section is under below :-

If the person responsible for deducting or depositing the tax at source, does not pay or deposit the TDS then Interest u/s.201(1A) @ 12% p.a. from the date on which the tax was deductible to the date on which such tax is actually paid will be levied on the amount of such tax.

2nd

Penalty u/s.271C is leviable if the assessee fails to deduct the tax at source within the prescribed time. The penalty leviable is equal to the amount of tax the deductor failed to deduct.

PROSECUTION U/S.276B

If the deductor fails to deposit the tax deducted by him at source, he shall be punishable with rigorous imprisonment for a term from three months to seven years along with fine.

Rajeev

Rajeev (Expert)

09 October 2009 Lakshmi ,

NO interest can be levied when banks are closed , obviously no one can pay if the banks are closed (assuming online payments also were not accepted )

The next working day will be deemed to be the date of payment for the purposes for all sections for all laws

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