int. on late pay of TDS

 
hi sir i have one query abt interest payable on late payment of tds
i.e. at what % & how the period will be calculated
Replies (3)

1% for every month or part of a month i.e. from the date when tax was deductible till the date tax is actually paid. Sec 201(1A)

Mr. Mohit is right. TDS is to be deducted on date of giving credit or date of payment, whichever is earlier. If u fail to deduct TDS on the said date, interest @ 1% p.m. is chargeable for every month or part of month, till actual payment of TDS is made to government.


Further, if TDS is deducted in time, BUT payment of the same is not made to the govt., in that case also, interest @ 1% p.m. will be chargeable for every month or part of month, until the payment is actually made.

Yes sandeep is right.

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