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TDS on delayed payment

V Gupta (5 Points)

23 November 2021

Whether TDS is to be deducted on interest to be paid to builder for late payment of instalments/ dues?

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2 Replies

Aditya Bajaj (80 Points)
Replied 23 November 2021

Yes, if such payment is interest in nature, tds u/s 194A is to be deducted

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 02 December 2021

Under Section 201(1A), in case off late deposit of TDS after deduction, you have to pay interest. Interest is calculated at the rate of 1.5% per month from the date on which TDS was deducted to the actual date of deposit. Say that your payable TDS amount is Rs 5000 and the date of deduction is 13th January.