what are interest rates for late payment of TDS

what is the interest rate if due to insufficant funds we failed pay TDS ammount on time.

plz xplain me thorugh exmaple. if TDS amt which is pending is 20000/- then......


Assuming TDS amount is Rs.20000, then you will be liable to pay interest @ 1% per month (on the TDS amount) for every month of delay i-e from the date on which it is liable to be remitted till the date of actual remittance.So interest amount per month will be Rs.200 (Rs.20000*1% p.m.). Multiply this by number of months of delay.Your interest on delay payment of TDS is arrived at.

Yes , sriram is corect

1% p.m.

thanks Shriram , vijay , Kirti

I was scraching my head for this clarification as my client is unable to credit the TDS collected by him into the Bank before 31-3-2008 and what would be the interest/penalty. Deepa, your query has saved my face. Thanks. But the real thanks goes to Sriram, Vijay and Kirti.


If i had deducted TDS on 13/12/2007 and deposited the same on 07/04/2008, that is, yesterday, tghen how will the TDS be calculated.

I mean would it be on a day to day basis or if on monthly basis, how much will i have to pay, 3 months or 4 months....Kinldy advice.


how can we know our TDS circle. what it is ? where it is written?

Chartered Accountant

Dear Colleagues

I have done the contract with one Agency and that agency is doing booking of 5 to 6 hotels on behalf of us. we will give them certain % of total billing amount of hotels. so on what basis we have to deduct TDS and how much %

Kindly reply me ASAP


Bijal Shah


Audit Assisstant

is there any penalty for late payment or non payment of tds?



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