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Interest on late payment of tds

TDS 337 views 1 replies

Manish

ARTICAL ASSITANT

38 Points Joined May 2010

Hello,

can any one tell me why income tax department is charged Interest on late payment of TDS for 2 month even if delay is for less than 30days. Is it correct to collect interest for 2 months ?

e.g. If i have deposited TDS on 10th of July 2014 for the deduction made on 30th June Interest is to be charged @ 1.5% for part of themonth.

Why should i pay interest for 2 months though delay is for less than 30days

Please solve this query

Replies (1)

CA Saloni

Manager-Accounts & GST Consultant

5124 Points Joined July 2014

Dear Manish, IT act says that in case of default in payment or deduction of TDS the period of delay would be considered from the date of deduction/non deduction & further part of month is considered as complete month.

So, in your case it is for full June & july month.Do not consider days.