Defaults files by nsdl delay payment interest on interest?

TDS / TCS 1551 views 2 replies

sameer

accountant

30 Points Posted on 25 February 2012

Dear all

Thanks in advance!

The Defaults has been generated for quarterly TDS/TCS statement by NSDL whereas two Interest column shown as under for delay payment

a) Late Payment Interest till Date of Deposit of Tax(A)

b) Late Payment Interest from Date of Deposit of Tax till Date of Processing(C)

My question is that whether the b) is under which section and is applicable? as per my view they have calculated interest as under (processing date is 24-01-2012 by NSDL)

Tax deposited	Date of Deduction	Date of Deposit	Due date	Months of Default	Late Payment Interest till Date of Deposit of Tax(A)	Late Payment Interest from Date of Deposit of Tax till Date of Processing(C)
29903.00	01-JUL-2011	09-AUG-2011	08-AUG-2011	2	897.00	81.00

The Interest on delay interest calculated for 6 month @ rate 1.5% p.m. is this correct? please explain otherwise

Thanks

S A M E E R

Replies (2)

Th Dipal Meitei

Finance Assistant & persuing MBA

53 Points Posted on 25 February 2012

Dear Mr. Sameer,

The same case of defaults has also been happen to me. As an employer i have discussed with the IT commisioner for waiving off the interest charged for late deposit of TDS since the amount was deposited four to five days late against the prescribed time limit of 7 days. However the IT dept has charged penalty for 1 month even though the late deposits is just for 4 to 5 days only. Therefore the interset rate of 1.5% levied is correct.

sameer

accountant

30 Points Posted on 25 February 2012

Dear sir

Thanks for reply

If you have read my post where as I have given example there are two column of interest

as per your answer a) Rs. 897 interest is correctly calculated (under section 201) i am agree with the same.

but my question is about next column b) where as interest calculated of Rs. 81 (which is calculated on Rs. 897 till date of 24-01-2012) is this correct?

Thanks & Regards

S A M E E R