Tds

Delay in depositing TDS or failure to deduct TDS

If TDS has not been deducted when it was applicable, interest is levied on the amount of TDS

• Interest @ 1% for every month or part of month from the date on which it was deductible to the date on which it was actually deducted.

If TDS was deducted but not deposited timely, interest is levied on the amount of TDS

• Interest @ 1.5% for every month or part of month from the date on which it was deducted to the date on which such tax was remitted to the government for payment.

There may be a situation where although no TDS has been deducted by the payer, but the receiver has accounted for the income in his return and paid the tax due on such income. In such a case, interest will be applicable to the payer @ 1% on TDS amount from the date TDS was deductible to the date on which the receiver submitted his tax return. (This is only applicable where the receiver is resident in India).

When to pay Interest on delay

Any interest applicable must be deposited before filing quarterly TDS return.

Thanks but i also know about that,i want to know to inerest calculation needs to be done

for example A salary is 50000/- per month 

toal salary  600000 per annum 

transport     19200

Balance     580800

Investment  150000

claimed  

net taxable  430800

Total tax  (430800-250000) = 18080 + 542 = 18622/12=1551 per month

now he is only providing investment of rs 50000/- then is needs to be calculted on less calculated amt or not if yes then on how much amt interest needs to be calculated ?

Its quite simple buddy., Recalculate TDS to be deducted for full year. less it from TDS deducted so far., divide the balance payable to the remaining months of salary to be paid during the FY, accordingly deduct TDS., deposit it to Govt. file the returns. thats all. Problem solved. no need to pay interest at all....

The above information was correct,