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Interest on tds deducted but not paid

TDS 845 views 7 replies

Hiral Mehta

Job

118 Points Joined August 2016

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)

Garima Singhal

executive

26 Points Joined July 2016

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

Krishna

student

654 Points Joined February 2015

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

CA Fenil H. Doshi

50 Points Joined May 2010

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