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Interest on tds deducted but not paid

TDS 902 views 7 replies

Hi,

I have deducted TDS as on 31.03.2016 but yet i have not deposited the tax to the govt authorities. Now if i want to pay tax than how will be calculation of interest?? the amount of tax is 30000 so the i have to calculate int form march-Aug i.e 6months or 5 months?

if for 6m than rate of Int will be 9% & if for 5 months than rate of int will be 7.5% on the amount of tax i.e Rs. 30,000

Kindly guide.

Replies (7)

interet would be @ 1.5%pm for 5 months i.e.april to august.

interest shall be calcuclated from date of deduction till date of deposit of tax i.e interest from mar to aug 1.5 percent per month
Hi

Interest will be from March till the month of payment.

You also need to consider March for Interest payment.

thus if paid in August, it shall be for 6 months and so on.

Should be noted that if the TDS is not paid on ot before due date for filing returns u/s 139 (1), the expenditure can be dissallowed depending upon nature of exp.

Thanks
CA Fenil Doshi

As far as I know you have to pay Rs. 200 per day penalty also upto the amount of tax. Expert please confirm this.

Shalini, that penalty is for non filing of TDS returns.
We need to consider March month..as well.
Int will be from the date on which tax is actually deducted till the date of deposit, so in your case march month to be included.


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