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TDS late fee payment interest

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Ramachandran R

127 Points Posted on 17 March 2022

Hi,

We paid professional fee for our consultant on JAN and reduced TDS. We failed to make payment on feb 7th & following month also.

Now whether interest has to be paid for 2 month or 3 months considering I'm paying immediately.

Also how much interest rate to be paid monthly on TDS amount

Thanks

Replies (2)

Quick Summary

This discussion clarifies the interest calculation for late TDS payments. Interest is charged at 1.5% per month, with any part of a month counting as a full month. Therefore, if TDS was deducted in January and payment is made immediately after missing the February and March due dates, interest for two full months will be applicable.

Indira

1401 Points Posted on 17 March 2022

For Non payment of TDS within the due date, Interest is charged at the rate of 1.5% per month from the date on which TDS is deducted till the date it is paid. This is calculated on monthly basis and part of month is taken as one full month.

Thanks