Urgent : tds on rent delayed deduction & non payment
Querist : Anonymous
Querist : Anonymous
Querist : Anonymous
### Facts:
* Rent paid Apr 2012 to Nov 2012: Rs. 14,520 per month
* Rent from Dec 2012 onwards: Rs. 15,990 per month
* No TDS deducted for Apr to Nov 2012 period
* TDS deducted only from Dec 2012 onwards (Rs. 1,599 per month)
---
### 1. **TDS liability on Apr to Nov 2012 (Delayed period)**
* TDS should have been deducted at the time of payment or credit (whichever is earlier) for the period Apr to Nov 2012.
* Assuming TDS rate on rent is 10% under Section 194-I.
* For Apr-Nov 2012:
8 months × Rs. 14,520 = Rs. 1,16,160
TDS on this = 10% of Rs. 1,16,160 = Rs. 11,616
You have not deducted this amount, so you are liable to deduct this now and deposit it.
---
### 2. **Interest liability on delayed deduction and non-payment**
* Under Section 201(1A), interest is payable for delayed deduction and delayed deposit of TDS.
* **Interest for delayed deduction:** 1% per month or part of a month from the date TDS was deductible till the date of actual deduction.
* **Interest for delayed deposit:** 1.5% per month or part of a month from date of deduction till date of deposit.
You need to calculate interest separately for each month of delay on Rs. 10% TDS amount (Rs. 14,520 × 10%) for Apr to Nov 2012.
---
### 3. **Steps to regularize**
* Deduct TDS for Apr to Nov 2012 immediately.
* Deposit the TDS amount along with interest as calculated above.
* File TDS returns including the delayed period.
* Issue TDS certificates to the deductee for this period.
* For future months, deduct and deposit TDS timely.
---
### 4. **Summary**
| Period | Rent per month | TDS @10% | Total TDS | Interest on delayed deduction + deposit |
| ------------------- | -------------- | --------- | ---------- | --------------------------------------- |
| Apr 2012 - Nov 2012 | Rs. 14,520 | Rs. 1,452 | Rs. 11,616 | To be calculated as per delay period |
---
**Note:** Interest calculation can be tedious. I recommend using the Income Tax Department’s TDS interest calculator or consult a CA for exact figures.
---
If you want, I can help you draft a calculation template for interest or guide you through filing the return for the delayed period. Would you like that?
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