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Interest on TDS & Assessment year

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Naveen Kumar

629 Points Posted on 25 April 2021

Dear Sir

We have deduct TDS on rent Rs.2200/- in January month.but due to some problem we are not deposit the same. so please suggest we will deposit the same via challen no. 281 by 30 April how much interest i have to pay and which assessment year I have to select.

Replies (5)

Quick Summary

This discussion clarifies the interest payable on late TDS deposits. If TDS on rent was deducted in January but deposited late via Challan 281 by April 30th, interest at 1.5% per month from the deduction date is applicable. The correct assessment year for this scenario needs careful consideration, with suggestions pointing towards either AY 2020-21 or 2021-22.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 25 April 2021

Under Section 201(1A), in case off late deposit of TDS after deduction, you have to pay interest. Interest is calculated at the rate of 1.5% per month from the date on which TDS was deducted to the actual date of deposit.