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Section 201(1) and 201(1a)

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HiIf a deductor is not an assesse at default u/s 201(1) then on which amount interest liability is calculated u/s 201(1a)?1. Is it on the amount of income shown by the deductee in his ITR ?2. Is it on the TDS that had to be deducted by the the deductor ?N plz explain throughly.Thanks
Replies (5)

In your case, Form 26A to be taken by your Client declaring that the Deductee has shown the sum of income in his returns.

Interest is calculated on tds amount, as follows,

Interest in case of Deemed date of payment of Tax :- As per section 201 if the payee has furnished his return of income and paid tax on such income and payer furnishes a certificate from Chartered Accountant to this effect in Annexure A and submit form No.26A to DGIT(Systems), then date on which return is furnished by the payee will be treated as date of payment of TDS ande not the date of actual date of payment of tax by the payee, i.e. payer will be required to pay interest u/s.201(IA)(i) till date of filing of return u/s.139 by the payee.

 

Thanks but Sir I had to deduct TDS of Rs 100000/- on 31-3-14.The ITR date of the payee is 30-09-14 and his income is Rs 6500000/-.Now i will be liable to pay interest on TDS amount i.e. 100000*18%*6/12 = 9000/-. Is 201(1a) in any way related to the income of the payee i.e. Rs 6500000/-?

Yes Interest is on income which the payee has received from your enterprise and not the total income.

So, it's just 1,00,000 that is to be considered for tds amount.
Yes it's comes upto Rs.9000/-

Hope your query is solved:-) 

Thank you sir


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