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Tds short deduction interest

CA Abhishek Goyal (Chartered Accountant) (504 Points)

28 October 2013

Hello,

i m confused in TDS short deduction interest calculation.

how to calculate TDS short deduction interest from following details.

Deduction date is 04/12/2012

Payment date is 04/02/2013.

Contract amount is 74400.00

short deduction amount is 744.20 rs.

as per my calculation short deduction amount is 42 rs. but in NOTICE there is 77 rs. demand.

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11 Replies

Aman (Finance Professional) (604 Points)
Replied 28 October 2013

interest @ 1.5% to be calculated on tds deducted from the date of deduction upto the date of paymnt..

CA Abhishek Goyal (Chartered Accountant) (504 Points)
Replied 28 October 2013

I m asking about the short deduction....1.5% rate is for late payment interest....1 % is for late deduction interest...plz show me the workings tht how 77 rs is come as a short deduction interest..

dhrithi (Student CA IPC / IPCC) (32 Points)
Replied 07 January 2014

I am dhrithi an articled assistant joined last month and can anybody help me out with this query.

calulation on interest on short payment

date of payment : 30/9/2012

date of deduction : 30/9/2012

due date : 7/10/2012 (if am not wrong)

delayed deposit months: 1

rate : ????

as per notice short payment is 17484 and interest on short payment is 3393.

i don't understand how is this calculated on what rate and delayed by how many months?

can anybody please show me the working?

please help.

dhrithi (Student CA IPC / IPCC) (32 Points)
Replied 07 January 2014

please reply me on dhrithisrinivas @ gmail.com

dhrithi (Student CA IPC / IPCC) (32 Points)
Replied 07 January 2014

dhrithisrinivas @ gmail.com

Girish (Chartered Accountant) (29 Points)
Replied 06 February 2014

Dhrithi, you can check the interest details by generating justification report from tdscpc website. If there is any calculation error, you can inform tdscpc.

sanchit (service) (53 Points)
Replied 04 March 2014

TODAY. I DOWNLOADED A JUSTIFICATION REPORT.

& FOUND that their calculation of interest was wrong !

plz correct me if I m wrong !

Attached File : 1166245 1293676 justification report.xlsx downloaded: 881 times

CA Abhishek Goyal (Chartered Accountant) (504 Points)
Replied 04 March 2014

Mr. Sanchit, interst calculation is right..bcz if tds is not deposited upto the due date then dept. Charge interest on tds amount from date of deduction to the date of payment.. In ur case payment is on12/10/2013. Nd cr is on sept..so interest is charged on 2 month by 1.5% or part there of..