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TDS - Interest on Late payment

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Flock Media

41 Points Posted on 19 August 2021

Dear Sir/Madam,

I have got notice from IT Department with regards to interest on late payment. (one day delay in TDS payment)

Pls help me how to pay the interest on late payment.

procedure for paying the amount and what is the due date to pay the amount.

Replies (4)

Quick Summary

This discussion addresses how to pay interest on a one-day delay in TDS (Tax Deducted at Source) payment. It explains that the same Challan 281 used for TDS can be utilised for interest payment. The process involves paying online, adding the challan to the TRACES portal, and appropriating it towards interest. Specific guidance is provided on selecting the correct section (400 for interest) and mentioning the amount under the interest head, even if the initial selection isn't perfect, as adjustments can be made on TRACES.

CMA Poornima Madhava

CMA

9106 Points Posted on 19 August 2021

Use the same challan 281 to make payment online. This is very similar to payment of TDS. Once payment is made, add this challan on traces portal and appropriate the same towards interest.

Flock Media

41 Points Posted on 19 August 2021

So Instead of 200 it will be 400

Which Section should I Select?? The TDS payment I made for Rent and Professional fees under Form 26Q

I should mention the amount in the interest head right??

CMA Poornima Madhava

CMA

9106 Points Posted on 19 August 2021

1) select 400 2) 194J or 194I 3) Yes Further, for S/N 2 & 3, even if you don't select the right field, you have an option to disclose the right info while you add the challan and appropriate the interest on traces portal.