Tds query

Originally posted by : CA. Abhishek K. Pandey
	If you anticipate payments, you may deduct from beginning, as it will lessen burden afterwards.

Burden in what sense i think liquidity ok? otherwise if assessee pay in advance on the basis of anticipation or on 8th month when it crosses limit of Rs.75000/- no difference in amt to be deducted and paid. Am I correct or not. I mean an obligation to deduct tax arises when limit of rs.75000/- crossed and hence interest calculation will start if not paid on 7th January 2016. please reply me. 

Yes you are right

If assessee pays tds on 8th January 2016 then interest calculation will be done from date on which tds was deductible to the date of payment i.e for Rs. 10000/- paid on 10-5-2015 interest will be 9 months(May 2015 to Jan 2016). Am i right? and so on for next paid 10000 for 8 months 7 6 5 4 and so on Am I right? reply

Yes.Int will be 1.5% p.m from the month in which tds deducted to the month of payment

By applying your sugesstion if assessee pay tds on 8th February 2016 then on tds whole tds of rs.1600/-(80000*2%) interest will be charged at 1.5% pm Hence, Total Amt of TDS challan will be TDS 80000+Interest 1600 = 81600Rs.Am I correct ? reply

please treat my earlier question as cancelled as it was wrong

By applying your sugesstion if assessee pay tds on 8th February 2016 then on tds whole tds of rs.1600/-(80000*2%) interest will be charged at 1.5% pm Hence, Total Amt of TDS challan will be TDS 1600+Interest 48 (1600*3%) = 1648Rs.Am I correct ? reply

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Considering original question ,75000 is crossed on 10-12-2015 so TDS should be on 80000*2%=1600.

Int: If payment is made on 8 Feb 2015 as per your question.Int will be  1600*1.5%*3=72