Tds late payment

Hi

Interest for failure to deduct tax at source/delay in payment of TDS As per section 201, if any person who is liable to deduct tax at source does not deduct it , or after so deducting fails to pay, the whole or any part of the tax to the credit of the Government, then, such person, shall be liable to pay simple interest as given below:

*Interest shall be levied at 1% for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax was deducted.

* Interest shall be levied at 1.5% for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax was actually remitted to the credit of the Government.

In other words, interest will be levied at 1% for every month or part of a month for delay in deduction and at 1.5% for every month or part of a month for delay in remittance after deduction

Dear sir/madam

TDS on rent deducted for the first quarter, but it is not remitted in time.if we paid now we have pay with late fee. To over come this I have given an explanination to my friends that PLZ remite amount in coming 03-08-2015. form this we considered that payment has been made on 31.07.2015 then late fee will not come.

Plz give necessary comment regards this,

Whether it is correct or incorrect.

Hi Sabari

Tds will be deducted on Payment or credit whichever is earlier this means if you have not booked the expenses yet and in other words if u booked the Rent on 31st July in your books then you have to deposit TDS by 7th Aug only

But

If you have already made the payment without tds deduction then you will be penalized with late interest.

Sir

The Rent payment has been booked in our book its an intial mistaken occur to over come this, while prepare TDS retrun instead of provide correct date why should not mention another date.