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Tds late payment interest calculation

Debasis Lenka (Internal Audit) (36 Points)

03 November 2014

I want to know the Interest Calculation for delay in Payment of TDS for the month of May'2014

TDS Amount Tax Deducted on Due Date Payment Date Delay Days (Payment -Due)

95519 08.05.14 07.06.14 28.06.14 21

161766 30.05.14 07.06.14 28.06.14 21

Pls let me know, Whether in these above case Delay days to be calculated from the due date or for Tax Deducted date. Pls show me the calculation also.

Regards

Debasis Lenka

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10 Replies

Ishan kewlani (Article) (172 Points)
Replied 03 November 2014

1) For tds amt 95519/- interest for 2 months @ 1.5 % from 8.5.14 to 28.6.14 = Rs 2866/-

2) For tds amt 161766 interest for 1 month @ 1.5 % from 30.5.14 to 28.6.14 = Rs. 2427/-

Interest to be calculated from the date of deduction to the date of payment for late payment.

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 03 November 2014

IN 2nd case also, it would be for 2 months......May & june....

CA SUKSHAM ARORA (CA) (569 Points)
Replied 03 November 2014

for 2 months @ 1.5% p.m.

ramesh kumar (ACCOUNTS MANAGER) (29 Points)
Replied 03 November 2014

Show Cause notice for initiation of prosecution under section 276B of the Income Tax Act,

all india, if assese deposit interest for delay deposit and also paid penalty, what is the answer of this prosecution,

Recuired answer what is the answer

ramesh kumar (ACCOUNTS MANAGER) (29 Points)
Replied 03 November 2014

If assese deposit interest for delay deposit and also paid penalty, why the prosecution u/s 276B.

madhukar reddy (student) (24 Points)
Replied 03 November 2014

Enter comment here

NAGAJYOTHI (DEPUTY MANAGER ACCOUNTS) (47 Points)
Replied 03 November 2014

Interest has to be paid for the period form the date of deduction to the date of deposit of such tax. In the given case both the deductions are made in May 2014, but tax is deposited in June 2014. So, you are required to pay interest for the month of deduction to the month of deposit. Thus have to pay for two months ( May and June) delay.

Ishan kewlani (Article) (172 Points)
Replied 03 November 2014

Interest to b paid for 1 month only. It's from date of deduction to date of payment. 30.5.14 to 29.6.14 month get's complete, but tds paid on 28.6.14 so interest to be levied for 1 month only.

ramesh kumar (ACCOUNTS MANAGER) (29 Points)
Replied 04 November 2014

Interest has to be paid for the period form the date of deduction to the date of deposit of such tax.

My question is next when assese deposit interest for delay deposit, why tds department lunch

prosecution u/s 276B.

and what is the answer for that prosecution u/s 276B