Penalty or interest on which tds interest not paid

TDS which is to be deposited on 7th may but it is paid on 3rd june without paying interest with that,

so my query is what is the interest rate for the interest due on tds.

Please explain.

Replies (7)

Interest is 1.5% per month or part of the month for late payment of tds.

U/S 201(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,— (i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and (ii) 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.] As per your information provided that TDS already deducted and not paid with in due date, so interest will be @ 1.5% p.m. for 2 months will charged.

1.5% from the date of deduction to the actual date of deposit. Part of month to be taken as full month.

(ii) 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 Interest to be calculate @ 1.5% per month or part of the month from actual date of deduction (April month) to the date of deposit (June month) i.e. for 3 months.

3 MONTHS INTEREST WILL BE CHARGED @ 1.5 PER CENT (APRIL TOJUNE).

Interest will be payable @ 1.5% p.m from date of deduction to date of actual payment done.i.e 3rd June. on day basis.

Whether penalty will applicable for late payment of TDS....????If yes what is the provision...????

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