Tds late payment interest & return late filing penalty

Dear Subhajit,

Interest u/s 201 for late payment of TDS:-
01.04.2013 to 12.08.2013 (if you pay it by 31st Aug.) = 5 months X 1.5% p.m. X 3500 = Rs. 263

Penalty for Late filing of TDS return:-
16.05.2013 to 12.08.2013 = 89 days X Rs. 200/day = Rs. 17800..... but penalty can't exceed the amount of TDS deducted i.e. Rs. 3500....

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Thanks Sir.

@   Mr Lovely Arora

Sir, Please suggest me if the payment of TDS is just delay by  one day  then how much they will charge as penalty e.g date of deduction is 31/08/2013 and amount  of TDS deposited on 8/09/2013.

Please explain .. thanxxx  in advance

An interest of 1.5% for 2 months is to be paid on the amount of TDS to be deposited to Govt.

1.5% - because you have deducted TDS but not deposited to Govt Dept.

2 months - because the duration is between date of deduction and date of payment. It is 1.5% per month of part of month and not taken in terms of days but calender month.

Dear Raman,

Interest would be charged for 1 month @ 1.5%... because the calculation needs to be made in terms of months (not days) and also from the date of deduction... i.e. 31.08.2013 to 08.09.2013

e.g. if it would have been deducted on 07.08.2013 instead of 31.08.2013, but deposited on 08.09.2013, then interest would be charged for 2 months... i.e. 07.08.13 to 06.09.13 and 06.09.13 to 08.09.13...

thus, it is for 1 month in your case.

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Payment of TDS is by book entry.  Want to know how are you going to pay interest. Is it in the form of cash ?.  OR by book entree...

Dear Bujjulu,

Interst is to be paid by cash..
suppose, if it is also need to be paid by book entry, then what's the purpose of charging interest... because book entry means payment made in your accounts only, not paid to the Government/other party.

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Dear Mr. Arora and OTHERS..

In Support of my point for calculation to be made for 2 months, i am attaching a file from Income Tax Dept - TDS Section. It is a Supporting file provided by department for demand raised on one of my clients for late payment of TDS.

Kindly have a look to the file. it is shown very clearly that what is calculated is the calender month and not the number of days..

If any other Query, kindly ask.

Thanking You

Gaurav Goyal

CA, CS, CWA, M.Com, B.Com

Dear Gaurav,

agree with notice proceedings... but that must be challanged in a court... because it would be too harsh on the asseesee.. because its not at all justified to charge interest for 2 months... even when dalay is for even a single day... and also as i said earlier VG sir supported the 1 month answer for this case.. which is also seems to be justified for all...

anyhow, thanks for disccusion over the matter.. and
Mr. Raman, till there is clarity on this regard or any judgment from the court(s), do calculate your interest for 2 months in that case...

after receiving penalty notice u/s 234e, while payong the amount, should we tick code 200 (ie. tds apayable by tax payaer or code 400 (tds on regular assessment, raised by IT dept)?

while making payment of penalty should we tick code as 200 or 400

Originally posted by : hitesh
	while making payment of penalty should we tick code as 200 or 400

Dear Hitesh Sir,

You Should tick as 400 if u paying it after receiving notice from dept. and revise the TDS RETURN IN ORDER TO CLOSE THAT DEMAND NOTICE else tick as 200 before filing tds return and pay with other details like amount of tds, interest & penalty accordingly in respective boxes

sir.,

what is the code & section for the tds penalty & interest on that please explain.