Calculation of interest where tds return filed on time

Dear all,

help me out on this query as mentioned below.

Actual Date of Credit/payment - 31/01/2014 (Ideal date of deduction But not showed in TDS Return)

Date of TDS deducted - 28/02/2014 (also showed as date of credit/payment in TDS return)

Date of TDS payment to Govt - 05/03/2014 as showing that TDS was related to the month of February but actually it is related to month of January, 2014

Now in the month of November, 2014 observed by auditor that it is case of Late deduction of TDS. So now how Interest on Late dedution of TDS and Interest on late payment of TDS is calculated.

My main concern is that if we charge 1% Interest as it deducted 1 month later and we will pay it in the month of November. So will there be provision of late payment of TDS attracted as there is only payment of interest on late deduction of TDS (Bcoz principle TDS payment is paid on 05/03/2014)

Kindly resolve asap.

Thanks

Replies (1)

No, there is no any penalty for late payment of interest because interest @ 1% for late deduction will be charged and late payment is not done as due date of payment is 7th March

Rule is as follows:-

From the date when TDS was deductible till date of actual deduction,rate of interest is 1% p.m.

For delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.5% p.m

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