TDS on provision provided on 31ST march but same has been deposited after due date then interest will be calculated from which month?
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 23 May 2012
INTEREST WILL BE APPLICABLE FROM 01.04.2012 AND WILL BE CALCUALTED ON MONTHLY AND PART OF MONTH WILL BE CONSIDERED AS COMPLETED MONTH
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 23 May 2012
If the provision was for 31st March, then interest would be calculated from 31st March itself. Intt is calculated from the dae of deduction in case of late payment.
Regards
Prateek
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 23 May 2012
I HAVE RECEIVED THE NOTICED FROM THE TDS COMMISIONER, HE ALWAYS COUNT THE DATE FROM 01.04 IN THE CASE OF TDS DEDUCTED 31.3 AND SAME DEPOSITED LATE WITHOUT INTEREST,
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 23 May 2012
IF TDS HAS DEDUCTED ON 30.3 THEN MONTH OF MARCH ALSO TAKEN FOR THE CALCULATION OF INTEREST.
Krishnadas S
(CA Final)
(43 Points)
Replied 23 May 2012
Neeraj Sir is right..
Interest is to be paid at 1.5 % for every month or part of a month on the amount of TDS from the date on which tax was deducted to the date on which tax is actually paid, and such interest shall be paid before furnishing the statement in accordance with the provisions of section 200(3).
So, here we have to consider the month march also for calculation of interest on late payment of TDS.
KARANDEEP,CA,B.Com,CS FNL
(JOB)
(457 Points)
Replied 24 May 2012
| Originally posted by : Prateek Agarwal | ||
 |
If the provision was for 31st March, then interest would be calculated from 31st March itself. Intt is calculated from the dae of deduction in case of late payment. Regards Prateek |
 |
Totally agreed with Prateek ji
CA Pankaj Ranawat
(Assistant Manager)
(86 Points)
Replied 24 May 2012
Neeraj sir is right. Interest on TDS is to be calculated from the date of deduction to date of payment. So from the date of deduction i.e 31st march interest is calculated . But the time for payment without interest is till 31st may in that case.
manmohan
(accountant)
(21 Points)
Replied 24 May 2012
Interest will be calculated from 31st March @ 1.5% p.m. till the month it is paid.
PRITAM JAIN, CA , CS
(Practising CA CS)
(398 Points)
Replied 24 May 2012
Hi Team,
After going through Rule 30 and 37CA of the Income Tax (Sixth Amendment) Rule,2010, I have found the following:
"Where the income or amount is paid or credited in the month of march: Tax should be deposited by 30th April....."
As per sec. 201(1A) of the Act:
Interest is at the rate of 1% from date of tax deductible to date of tax deducted
Interest is at the rate of 1.5% from date of tax actually deducted to date of tax actaully paid
In your case Date of tax actually deducted is 31st March
Therefore Int. @ 1.5% from 1.4. upto month of the actual date of payment
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 24 May 2012
Dear Pritam,
You yourself have mentioned Intt is charged @ 1.5% from the date of tax "actually deducted" till date of payment.
Hence, it is clearly evident that actual date of deduction is 31.03, so how are you considering it from 01.04?
Your rule has laid out that intt. has to be calculated from 31.03 i.e. date of actual deduction.
Regards
Prateek
CA Priyaadarshini
(CA)
(105 Points)
Replied 24 May 2012
Interest should be calculated from the date of deduction i.e 31st March
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 24 May 2012
I AGREE WITH PRITAM JAIN
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 24 May 2012
In your case Date of tax actually deducted is 31st March
Therefore Int. @ 1.5% from 1.4. upto month of the actual date of payment
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