Interest on TDS

Dear Amritesh

before 31st january we are not liable to deduct TDS and after 31 january we deducted the TDS on whole amount therefore we are not liable to pay intrest on TDS.We are liable to pay intrest when we have deducted the amount or liable to deduct the TDS but not deducted i.e defaulting in depositing the TDS amount

Hi Amritesh,

You are doing right..... Now you have to dedect the TDS on 54000. since, the limit has been crossed after receiving the bill a sum of rs 19000.

Regards,

Nirmal - CWA

Ya you have to deduct TDS on Rs 54000/-. You dont have to pay any interest for late payment.

excuse me boos u have to deduct tds And also u have to pay intesest on rs.35000.

as per the incomet tax act we have to deduct tds at the time of payment or the credit to account whichever is earlier.

the language of the act is "where the amt. of such sum or, as the case may be, the aggregate of the amounts of such sums CREDITED OR PAID OR LIKELY TO BE CREDITED and paid during the financial year.

the word LIKELY  shows the  liab. of interest.

hey sachin u are absolutely right by words

but practicalyy it is not true

there will b no interest on this late payment( as it is not a late payment)

as u knw as per the amendment of finance act 2008

any tax which acrrues till 28th feb if is paid till 31st march no intrest accues on it

in simple words just show the amount when accured  and pay the tds on or  before 31st march

and i was also so confuesd on the said topic earlier but just have realised what exactly it means

tc