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Interest on tds

Rupesh Mane (Article) (61 Points)

22 June 2012

Dear Expert...

If TDS deducted on 31/03/2012 and paid on 07/06/2012 then interest paid for Two or three months......??

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14 Replies

Raman Arora (Bank Auditor) (40 Points)
Replied 22 June 2012

interest for 2 months

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 22 June 2012

(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at eighteen per cent per annum on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid.

SO THAT ON ABOVE BASIS INTEREST WILL BW CHARGED FOR 3 MONTHS

4 Like

Santosh V. Thakur (Sr. Accountant) (187 Points)
Replied 22 June 2012

I agree.

Deposit of TDS:

As common rule tax is to be deposited with 7th of the immediate next month after deduction .However March tax is to be deposited by 30th April of the next financial year.For March ,2011 tds ,due date is 30.04.2011 and March 2012 due date is 30.04.2012.

Interest for 3 months.

Anagha (IPCC, Animation) (42 Points)
Replied 22 June 2012

Interest has to be paid for three months. Interest is calculated from date of deduction to date of remittance and for this purpose part of a month is also considered as full month. Therefore interest has to be paid for three months irrespective of the due date.

Gunjan Tulsyan (Article) (222 Points)
Replied 22 June 2012

Actually as per the section it should be three months but as per NSDL calculation it would be two months....!!!!!

Nitil Kr. Agarwala (Persuing CS) (264 Points)
Replied 23 June 2012

Interest should be paid for three months @ 1.5% p.m.

mehul (ca final student) (83 Points)
Replied 25 June 2012

Interest should be paid for three months @ 1.5% p.m for 3 months

CA Kiran Kumar (Chartered Accountant) (34 Points)
Replied 25 June 2012

For 3 months

Pankit (Accounts) (41 Points)
Replied 25 June 2012

Int should be paid for 3 months..

C.A. Sandeep Wawhal (Chartered Accountant PGDFM BCom.) (1823 Points)
Replied 25 June 2012

Agree with Pravin Singh

AMIT SAXENA (Sr. Business Development Executive) (29 Points)
Replied 25 June 2012

Hello experts,

I have issue of TDS deducted by my company, but the client unable to take the payment cause of lack of TDS-certificate received . Kinly let me know how to get that paid tax back ?

Is there any renew of cerficate is possible for tds.

ie. Can we renew the tds-certificate of 11-12 year to 12-13 year? that the same payment can recieved by client ?