Interest for non deduction of TDS

Dear Experts,

Is it possible due to non deduction of TDS the Interest on TDS amount exceed the actual amount of TDS ?

Is there any limit of Interest ?

Replies (5)
Quick Summary
This discussion explores whether the interest charged for failing to deduct Tax Deducted at Source (TDS) can exceed the original TDS amount. Experts clarify that there is no upper limit on this interest, meaning it can indeed become higher than the TDS liability. If the recipient has filed their tax return, the deductor may be liable for interest from the deduction date up to the return filing date, requiring a certificate from the recipient.

Since interest for non deduction is applicable @ 1% pm or part thereof, when interest is due for 100 months (>8 years), it would equal the TDS I think.

Thank you Mam,

If TDS liability is 100 & Interest on TDS liability is 150 ... , Then which amount we have to pay as Interest 150 or what ?

I want to know that Interest on TDS amount can exceed then TDS liability or not ?

I think interest of ₹150 has to be paid in this case because there is no cap on interest unlike late fee.

Further, if the deductee has filed IT return considering such income, then interest shall be paid by the deductor from the date of deduction to the date of filing of such return by the deductee. A certificate from deductee is required in this case.

Thank you so much Madam....

There is no capping on interest

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