Interest payable on late payment of tds

2 months.

 

These are the thee case which will solve the your prolbem 

Suppose TDS was required to be deducted on 10.10.2012 and was to be paid on 7.11.2012; now

Case 1: Assessee deduct the TDS on 10.10.2012 but pays TDS on 31.12.2012. Now the interest u/s 201(1A) shall be charged from 10.10.2012 to 31.12.2012 @ 1.5% per month i.e. for 3 Months.

Case 2: Assessee failed to deduct TDS on 10.10.2013 and deducts TDS on 31.12.3012 and pays TDS on 17.1.2013, now

• Interest u/s 201(1A) shall be charged for 3 months @ 1% per month for the period 10.10.2012 to 31.12.2012.

• Interest u/s 201(1A) shall be charged @ 1.5% per month for one month from 31.12.2012 to 17.1.2013.

Case 3: Assessee neither deduct TDS nor pays TDS. In this case assessee shall be deemed to be as assessee in default u/s 201(1) for the amount of TDS not deducted, now

• the penalty for being assessee in default is upto an amount of TDS not deducted; and

• interest for assessee in default shall be levied @ 1% per month upto the date of order under section 201(1).

• You will have to pay the interest of 2 month becoz interest is paid fo the month and part of the month

 

I agree with the above answers. I'm posting this reply since you have asked for relevant act. As per section 201(1A)(ii) Interest is payable at one and one-half per cent. for EVERY MONTH or PART OF A MONTH on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid, and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.” In your case two part of the months r ter (1 day in April nd 23 days in may) thus interest as to be paid for two months

Originally posted by : veeru sagar
	These are the thee case which will solve the your prolbem  Suppose TDS was required to be deducted on 10.10.2012 and was to be paid on 7.11.2012; now Case 1: Assessee deduct the TDS on 10.10.2012 but pays TDS on 31.12.2012. Now the interest u/s 201(1A) shall be charged from 10.10.2012 to 31.12.2012 @ 1.5% per month i.e. for 3 Months. Case 2: Assessee failed to deduct TDS on 10.10.2013 and deducts TDS on 31.12.3012 and pays TDS on 17.1.2013, now Interest u/s 201(1A) shall be charged for 3 months @ 1% per month for the period 10.10.2012 to 31.12.2012. Interest u/s 201(1A) shall be charged @ 1.5% per month for one month from 31.12.2012 to 17.1.2013. Case 3: Assessee neither deduct TDS nor pays TDS. In this case assessee shall be deemed to be as assessee in default u/s 201(1) for the amount of TDS not deducted, now the penalty for being assessee in default is upto an amount of TDS not deducted; and interest for assessee in default shall be levied @ 1% per month upto the date of order under section 201(1). You will have to pay the interest of 2 month becoz interest is paid fo the month and part of the month

part of the month is treated as a month... hence it is 2 months and u need to pay interest for 2 months....
 

Thank you for the replies.

Sir what i understand is that even if their is a delay of one(1) day in payment of TDS we are levied with two months interest .

i.e. If we are unable to pay TDS on 7th of a month (Which is Deducted on last day of previous month), & we are Depositing it on 8th (one day late) , we have to pay two months interest.

Kindly correct me if i am wrong.

Alpa Gala 

Originally posted by : Alpa
	Thank you for the replies. Sir what i understand is that even if their is a delay of one(1) day in payment of TDS we are levied with two months interest . i.e. If we are unable to pay TDS on 7th of a month (Which is Deducted on last day of previous month), & we are Depositing it on 8th (one day late) , we have to pay two months interest. Kindly correct me if i am wrong. Alpa Gala

its true...you need to pay for the whole month....

it is for 2 month , because due date is 7 may ,and you paid on 8th ,  tds not calculated on day to day basis 

please refer the link 

/experts/tds-577865.asp

@ Alpha: yes you are right. Even if there is one day delay in payment of Tds interest should be paid for 2 months coz the period for late remittance is computed from the date on which Tds should be deducted nd not from the date on which should be paid.

Thank you for reply me.

 

sir

i deduct tds on 07.9.13, but i fail to submit. and submitting on 05.10.13. interest is being charges 1.5% per month but for how many month interest will be charged, Is it for 1 or 2. please tell me 

dear rashid,

you deducted tds on 7.9.2013  ok  ?

so  for the month of september  due date is 7.10.2013

so thier is no tds on late payment as you said that you paid on 5.10.2013