Can anyone explain me what is the differencebetween Date of Payment and Date of Deduction at the time of Quarterly file returns. I got a penalty of 1% for difference in dates of both Date of Payment and date of Deduction.
Help Me Please
Menu
Date of deduction and date of payment
Replies (2)
I have attached file of Justification report received from Traces, Can anyone explain me.
Please suggest regarding Justification report
I had a look at the justification report that you have attached. To understand why you have been charged an interest of Rs. 190, you have to understand the basic provisions of TDS.
As per provisions of the Income-tax Act related to TDS, Tax has to be deducted on the date when payment has been made for the respective expense.
Also, as per section 201, if any person who is liable to deduct tax at source does not deduct it or after so deducting fails to pay, the whole or any part of the tax to the credit of the Government, then, such person, shall be liable to pay simple interest as given below:
- Interest shall be levied at 1% for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax was deducted.
Here the date on which such tax was deductible shall be the date of payment.
Recent Topics :
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
Related Topics :
CAclubindia
