Interest on late payment of tds

Hello everone. Today I have recd Justification report for late payment. Actual data is

Date of Payment to vendor is 02.05.2012

Tax deduction date is 31.05.2012

TDS paid date 07.06.2012

But Dept. has sent Justficatin Report for one month delay. Please clarify.

If employer/deductor/payer fails to deposit TDS within the time limit as mentioned above, then he is liable to pay interest penalty @ 1.5% for every month or part of the month from the date of deduction. (w.e.f. 1st July, 2010 by Finance Act 2010). According to Income Tax Act, Interest is not a penalty so it cannot be waived off. The payment must be paid for the failure or late deposit of TDS. -

It shoulde of 1 month(22 day count as a one month)

The notice must be:- for late deduction and NOT for late deposit of the TDS deducted.

for clarity....

From the date of payment to till date of deduction i.e 1% (in your case you paid on 2/5 BUT deducted on 31/05/2013. For this you must have got notice and NOT for late deposit @ 1.5%.

Please go through the notice again and confirm.

You are correct. The deduction is only for late deduction. Actually the payment to vendor was made on 02/05/12 and the deduction was also done in books on 02/05/2012. But while filing the return the same was shown as month end date as 31/05/12. Whether we can file the revised return, please advise or how to proceed .Thanks

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