Tds deposit

In this case also CBDT has issued a clarification vide Circular No. 676 dated 14-1-1994. In the circular, based on the section 10 of the General Clauses Act, 1897, it was clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961 would not be charged.

Even though the Circular is issued with reference to payment of advance taxes only, the same also extends to payment of TDS. Refer Rule 125 of Income Tax Rules, 1962.

Hence, accordingly, if the bank is closed (due to Sunday or holiday or strike) on the due date of payment, the same can be paid on the next working day. There will not be any interest or penal consequences.

Pl keep everything in file for future reference if needed by deptt.