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Clarification

TDS 388 views 1 replies

vijaya kumar n

JOB

488 Points Joined July 2009

Dear all,

Good Afternoon to All, one of my friend asked this question…..

He deducted tds on rent(Office Rent) of December, January and February, but Owner is a senior citizen and she applied for the TDS exemption certificate. She not able to get that certificate and also 3 months tds not filed to IT Dept. Now he need to pay the TDS amt to IT dept. Now My friend question is how to calculation interest on this………..

Pls find the attached file……in that sheet two methods is there which method he have to follow for paying the TDS

Attached File : 1 methods.xlsx downloaded: 108 times

Replies (1)

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

Interest is to calculated from the date when TDS was deductible till the date of payment.

So interest to be calculated for months as stated below taking into account that rent accrues on 1st of every month

December	4
January	3
February	2

Also you do not have to pay interest on interest as calculated in method 1. If rent accrues on the last day of the month then calculation as per Method 2 is correct