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Tds deducted but not deposited

Priya Ranjan (Officer) (24 Points)

11 July 2013

Dear members I have a query regarding tds . suppose I have deducted the tds on 04/04/2013 for section 94H but not submitted the tds till date 11/07/2013. for how many months and what should be the rate for calculation of intrest for latepayment of tds . suppose I want to remitt the tds today I e 11/07/2013

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20 Replies

C.A. Jignesh N. Mehta (C.A.) (1030 Points)
Replied 11 July 2013

interest is payable @ 1.5% for month or part of month for delay in depositing tds to govt a/c.

in your case interest is payable for 4 months i.e. april to july

even a single day would constitute one month.

hope your query is solved

CA Rohit Maurya (Associate) (213 Points)
Replied 12 July 2013

DEAR,

You have deducted TDS on 04th April, 2013 so your due date was 07th may, 2013 but till date you have not deposited the same and hence your will be liable for Interest of 1.5%pm as per section 201(1A) of income tax.

In your case you have delayed for MAY, JUNE and JULY month so you have to pay 3 month delay interst @ 1.5% Per Month.

Best of luck.

C.A. Jignesh N. Mehta (C.A.) (1030 Points)
Replied 12 July 2013

(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—

(i) at one per cent 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 is deducted; and

(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,

From the section 201(1A)(ii) it is very clear that interest is payable from the date TDS was deducted and till the date it is paid.

Hence it is four months.

1 Like

CA Suryakant Dubey (CA ) (931 Points)
Replied 12 July 2013

1.5% FOR 3 mONTHS...April,May& June

Sachin Rajput (account exe) (593 Points)
Replied 12 July 2013

please deposit 4 months intrest otherwise u will surely get income tax notice for short deposit intrest .

Revanth (Job) (145 Points)
Replied 12 July 2013

In this case you need to pay interest for 4 months @ 1.5% per moth.

XYZ..... (-) (516 Points)
Replied 12 July 2013

Hello everyone,

In above query tds was to be deposited on or before 07/05/2013. If not deposited, interest due starts from 08/05/2013, means from may 13. So accordingly Interest should be for 3 months @ 1.5%( may, june, july). Please clarify why everyone above are saying interest for 4months??

Amit Agiwal (Manager AP) (25 Points)
Replied 12 July 2013

Interest will be calculated from the date of transaction to till its deposited.

part of month will be calculated for month only. hence in this case 4 months @ 1.5% interest will be applicable

Bhav Bhuti Sharma (Towards Professionalism ) (823 Points)
Replied 12 July 2013

Agreed with C.A. Jignesh N. Mehta
	(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,— (i) at one per cent 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 is deducted; and (ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid, From the section 201(1A)(ii) it is very clear that interest is payable from the date TDS was deducted and till the date it is paid. Hence it is four months.

P.GANESAN (Accounts & Audit) (53 Points)
Replied 13 July 2013

TDS Deducted in the month of April is due for payment in the month of May. Hence interest is payable for the months of May,June,July only. That is for 3 months only...

Ashish Kukreja (CA Final Student) (587 Points)
Replied 13 July 2013

Interest on TDS is payable for 4 months i.e.from the the date of deduction to the date of payment @ 1.5% --April to July

vishal (Chartered Accountant) (67 Points)
Replied 13 July 2013

100% 4 months as section 201(1A) clearly states the words "from the date on which such tax was deducted" .

Pawan Surana (JOB ) (22 Points)
Replied 13 July 2013

The interest rate for the late deposit is 1.5% Per month or part of month from the date on which tax is deducted to the date of payment . In the present case , u will have to pay interest For 4 months .

deepesh mittal (Student CA Final ) (23 Points)
Replied 31 July 2013

In the above case if compnany deduct TDS on commisssion for the AY 2013-14 but not issue any TDS certificate and no TDS is deposited yet. In this case what should i do? Can i claim for TDS in my IT return for AY 2013-14? There is nil TDS in my 26AS. Today 31/07/2013 is last date for filling of income tax return and if i delay in filling than can i claim for such TDS?