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Interest on late payment of tds

Kanthraju (Accountant) (29 Points)

05 September 2011

Please suggest me to caliculate interest on late payment of TDS. For the month of Apr-11 rent (Accounted on 30/04/11) paid on 13th of May 2011. TDS deposited on 6th of July. Here what is the due date for payment of TDS? How many month interest to be paid to Govt of India?

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11 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 05 September 2011

The TDS for the month of April is to be deposited on or before 7th May. In your case TDS is deposited on 6th July which has resulted into a delay of 3 months (ie. May, June and July), hence Interest shall be calculated on 3 months. The rate of Interest on late deposit of TDS is 1.5 % p.m

Regards,

Devenda

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 05 September 2011

Originally posted by : Devendra
	The TDS for the month of April is to be deposited on or before 7th May. In your case TDS is deposited on 6th July which has resulted into a delay of 3 months (ie. May, June and July), hence Interest shall be calculated on 3 months. The rate of Interest on late deposit of TDS is 1.5 % p.m Regards, Devenda

Venu Gopal (Service) (31 Points)
Replied 05 September 2011

`For the month of april, you supposed to deduct tax in the month of april and needs to be deposited on or before 7th May. Since you deposited in the month of July, it was delayed by 3 months. There are two types of interest rates are inforce.`

`For late deduction of Tax deduction at source-(period date from tax deductible to date of actual deduction )(rate 1 % per month or part thereof)`

`For late deposit of TDS after deduction (period :date from tax deducted and date of actual deposit)(rate 1.5 % per month or part thereof)`

1 Like

TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)
Replied 06 September 2011

3 months delay @ 1.5% P.M so 4.5%

Pradip Shaw (Practice) (227 Points)
Replied 06 September 2011

3 monts delay, May June & uly, 1.5% p.m. ie, 4.5%

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 06 September 2011

Agree with above. TDS deducted in the month of April is to be deposited on 7th may or before,but here deposited on 6th july,delay months,MAY,JUNE,JULY,3 month

Rate of interest 1.5% per month

Total interest 4..5% applicable.

ca praveen

Manan (student) (69 Points)
Replied 06 September 2011

Kindly tell me in 3CD, under which clasuse Interest on late payment of TDS would be shown :

Clause 17(d) or Clause 27 ? Please reply asap.

CS Bijoy (Expert) (6394 Points)
Replied 06 September 2011

Check the 3CD forn mention their for Interest on Late payment of TDS.

CA Atul (Tax Manager) (294 Points)
Replied 06 September 2011

Dear Manan,

Clause 17(d) is for "Delay in payment of Provident fund" for TDS payment delay Clause 21(i) is there in 3cd report.

PANKAJ KUMAR (PROFESSIONAL) (168 Points)
Replied 06 September 2011

The delay in payment of TDS is of 3 months may, june, july. The rate in foce is 1.5%p.m. i.e. total 4.5%. Regards Pankaj

sakariya tp (B.Com) (21 Points)
Replied 16 October 2012

Originally posted by : Devendra
	The TDS for the month of April is to be deposited on or before 7th May. In your case TDS is deposited on 6th July which has resulted into a delay of 3 months (ie. May, June and July), hence Interest shall be calculated on 3 months. The rate of Interest on late deposit of TDS is 1.5 % p.m Regards, Devenda