what are interest rates for late payment of TDS

1% pm or part of the month. Even if the delay is for 1 day, treat it as one full month and then apply 1% rate.

What is the limit at which commercial Banks will deduct TDS on Interest.

01. For Senior Citizens

02. For Resident individuals.

What are the forms required to be submitted to avoid TDS and at what time the form is to be submitted

Can u give me excel file for interest on TDS late payment ?

The interest  should be calculated from the date on which the tax was supposed to have been deducted( please remember not the due date for deposit of tax deducted) to the date of actual payment.

Let us take an example

Payment of interest on loan (194A) to the party  Rs.5000 is on 1-1-2009   TDS is say 10%   Rs.500

Tax should have been deducted on 1-1-2009

Due date for depositing the tax is 7-2-2009

Actual date of deposit of tax to Govt. 5-3-09

Interest should be worked out from 1-1-2009 to 5-3-2009

Whole of jan.09 is one month @ 1%

whole of Feb 09 is one month @ 1%

Part of March 09 is one month @ 1%

So total of 3% on 500/- shall be payable to department as interest

Dear Nalam,

Could you please quote the relevant section of Income-tax Act.

the late payment of TDS amounts to interest of 1%  per month or part there of.

the late payment of TDS amounts to interest of 1%  per month or part there of.

Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—

(i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,

and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.]

this amended provision was applicable from 01-07-2010.

1% p.m.

hi ,

i want to know that, my tds related financial year 2005-2006 now i have to deposit in january.2011. i want to know what is rate of interest from 2005-06 to january.2011.

supose tds Rs.2900000/- then interet what...................?

its 1.50% per month after 1.10.2010

Sir,

pl tell me what the interest rate if I Deduct TDS U/S194J in April'2011 for March'2011 and that was deposited on 05.05.2011.