kindly help how to calculate Interest for Late deposit of TDS. Is it from the date of deduction/ payment to actual date of deposit or from due date of deposit to actual date of deposit?
CA Anil Sah
(Jr. Manager (F&A) PSU)
(139 Points)
Replied 10 July 2011
FOR NON DEDUCTION OF TDS INTEREST IS @ 1% PER MONTH FROM THE DATE OF PAYMENT OR ACCOUNT CREDITED (WHICH EVER IS EARLIER) TO ACTUAL DATE OF DEDUCTION
, AND FOR NON DEPOSIT OF TDS AMOUNT THE INTEREST RATE IS @ 1.5% PER MONTH FROM THE DUE DATE FOR DEPOSIT THE SAME ( 7th of next month , but subject to 31 march ) TO DATE OF ACTUAL DEPOSIT.
Ashok Katarmal
(Manager Accounts)
(75 Points)
Replied 11 July 2011
If Deducted TDS is being not paid on next date ie. on 7th, It will be considered late for full month, from 7th to 30/31 will be considered 1 month if paid in between dates.
Further to keep in mind here that if amount paid in any date of succeeding month of due month it will be considred full month and Interest to be calculated accordingly.
For example,
1 - TDS due date is 7th MAY and paid on 12th MAY, Interest is payable for 1 month
2 - TDS due date is 7th MAY and paid on 6th JUN, Interest is payable for 2 months.
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