Query on tds

Whn submitting the Challan of TDS due to bank holiday the challan was submited one day latter thn the due date and after filing the return an intimation for one months interest came... how deal in such a situation

Replies (3)

Hi,

Circular 676 dt14-01-1994 of CBDT reported in 205 ITR (st)330 says if the last date of payment of advance tax is a day on which the receiving bank is closed,the assessee can make the payment on the next working day without attracting interest.If a harmonious interpretation is taken the same circular applies to TDS remittances also. If not interest provisions attract.

Also General clause Act may be applied and accordingly next working day will be treated as last day.

Rgds//Vaibhav

But that holiday was there due to quaterly closing of the bank...so how to prove that to IT authorities.

If the due date is a public holiday or expected holiday, then the payment should be made on the preceeding date. Otherwise the next day.

As per your facts you're saying that is the quarterly closing of the bank.

But is it expected or not?

Is it same in the case of other banks too. If not, why didn't pay it through???

 

 

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