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Interest on late deposit of tds

LEKHRAJ GUPTA (SERVICE) (30 Points)

13 May 2013

My query is regarding the interest on late deposit of TDS:

Suppose I credited the party account for commission of Rs. 450000.00 on 31.03.2013 and deducted the TDS of Rs. 45000.00 on 31.03.2013 @ 10%. I did not deposited the TDS by 30.04.2013.

If I depositing the TDS on 13.05.2013 than how much will be the Interest on late deposit of TDS

Interest for 3 months (March, April, May) 4.50%

Interest for 2 months (31.03.2013 to 30.04.2013 1 month and 01.05.2013 to 13.05.2013 1 month) 3.00%

Regards

lekhraj.gupta @ gmail.com
09868944040

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5 Replies

CA Tushar Singhania (Asst. Manager Accts & Fin.) (402 Points)
Replied 13 May 2013

Dear Lekhraj,

Interest on TDS is to be computed @ 1.50% from the day expense was booked or paid, whichever is earlier, till it is actually paid. hence TDS will be for 3 months.

Rahul garg (ca final student) (89 Points)
Replied 13 May 2013

no, it is 2months

interest period taken from the tax deducted

Vishal (Student) (154 Points)
Replied 13 May 2013

Interest will be charged at 1.5% per month or part there of. So, default is only 2 month, i.e., may and jun. Therefore, interest will be charged @ 3%. TDS Software

Harsewak singh (Professional) (84 Points)
Replied 14 May 2013

INTEREST CHARGED WILL BE ONLY FOR 2 MONTHS ( @ 3%) IE IST MONTH-- 1/04/2013 TO 30/04/2013

2ND MONTH--01/05/2013 TO 12/05/2013.

Darpan aggarwal (Article assitiant) (141 Points)
Replied 08 August 2013

DEAR ALL,

INTEREST WILL BE CHARGED FOR 3 MONTHS. i.e from date of deduction (month) to date of deposit of tds (month).

In your case, you deduct tds for the month of march ,2013 on 31.03.2013 , then, you pay the same on 13 may 2013. the interest calculation as given below:-

March - 1 month

April - 1 month

May -1 Month

i.e for 3 Months interest @ 1.5% per month = 4.5%

This calculation is done by CPC, GHAZIABAD. AND SAME IS ALSO MENTION IN THE LAW.

INTEREST ON TDS FROM DATE OF DEDUCTION.

I HOPE , I CLEAR TO ALL OF YOU.

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