If suppose I have paid excess amount for tds in month say Jan. In february I have deducted tds @ wrong rate of interest say 1% instead of 2% and in march I pass a journal entry to rectify my mistake and adjust the differential amount with the excess paid earlier in Jan and remainig amount (if any) in march. do I hav to pay any interest? And if fail to pay interest and the same is not reflected in my quarterly return than do i also have to pay penalty (after return filing)?
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Interest and penalty on interest?
Replies (2)
i think interest is to paid.This is bcoz adjusting the excess payment of tds with next month's deduction is not prescribed in the act i think.u have to intimate the excess payment to the related party who in turn have to get the refund by filing the return.yes penalty may be levied if u fail to declare in the return.plse correct me if i am wrong
Well Interest has to be paid, Im not sure about penalty.
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