Late deduction and late payment of TDS

Interest on late payment of TDS @ 1% per month (u/s.201(1A) ).

What can you do to avoid interest? Booking of expense lately? Thats risky actually.

TDS should be deducted at the time of credit or on the date of payment whichever is earlier. WHere u deduct tds but fail to deposit or fails to deduct tds, u shall consider as assessee in default and accordingly interest u/s 220 and penalty u/s 210 would be chargeable alongwith interest u/s 201

Hi,

As per Finance Act, Interest Rate for TDS would be paid @ 1% pm or part of month from date of Credit not due date.