Tds on last financial year payment

2% TDS WITH 4 MONTH'S INTEREST ..................

For payment of ₹1,00,000 on 7 April 2025, if the same 2% TDS provision applies, TDS is ₹2,000 and the net payment is ₹98,000. The payment date falls in FY 2025–26; confirm the applicable section and rate for the nature of the payment, since the rate used on 15 December 2024 may not necessarily apply after 1 April 2025.

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TDS on a bill credited in December 2024, paid later:

• TDS is due at the earlier of credit or payment. If the amount was credited to X Ltd's account on 15 December 2024 without deducting, deduct now at the applicable rate and deposit with interest: 1% per month from the credit date to the deduction date, and 1.5% per month from deduction to deposit (Sec 201(1A)). File or revise the TDS return for that quarter.

• For FY 2024-25, the expense may face 40(a)(ia) disallowance (30%) if TDS wasn't paid by the ITR due date.