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Tds late payment interest

TDS 440 views 1 replies

Dear Friends, 

       i have received notice from TDS department for late payment interest. while checking i found that i have already paid the interest. however the calculation of deparment is different. the department is calculated interest from the date of deduction. however the department has not given me the credit for the interest amount i have already paid and demanded full interest. now advice me what should i do to get the Credit of interest i have already paid and pay the balance so the default is get cleared.

Thanks in advance

 

 

Replies (1)

As per the sec 201(1A), if you have not remitted the TDS on due time, Interest will be levied @ 1.5% from the date when deduction was made till the date of payment.

So department is correct at their place.

Now you need to check whether they have considered the interest paid by you or not.

There might be chances that they have considered the intereset paid and adjusted the same from total interest payable and they are asking the differece amount.

If it is not so then you must meet the AO and ask for the explanation. 


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