what are interest rates for late payment of TDS

Page no : 3

Sandeep (Chartered Accountant) (60 Points)
Replied 19 November 2008

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.



ravijayanthy (Asst.Manager-Accounts) (0 Points)
Replied 23 November 2008

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


SATADAL SAHA (I.T.) (0 Points)
Replied 27 November 2008

Originally posted by :M.Sriram Shenoy
" 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. "


 


(Guest)
Originally posted by :Deepa
" 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......
"

(Guest)
Originally posted by :Deepa
" 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......
"



Surendra Balaram Shinde (Account Officer) (26 Points)
Replied 24 February 2009

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


Nalam Ravindranath (78 Points)
Replied 06 March 2009

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


Nitesh Mistry (12 Points)
Replied 12 September 2009

Originally posted by :Nalam Ravindranath
" 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.


Khem Raj Pandey (Audit Assistant) (26 Points)
Replied 14 September 2010

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


Khem Raj Pandey (Audit Assistant) (26 Points)
Replied 14 September 2010

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




Dinesh Kumar Agarwal (Article clerk) (117 Points)
Replied 14 September 2010

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.


Ashish Chauhan (CA-Final) (31 Points)
Replied 15 September 2010

1% p.m.


Gaurav (Accountant) (24 Points)
Replied 11 January 2011

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...................?


Pankaj Arora (Learner) (3134 Points)
Replied 11 January 2011

its 1.50% per month after 1.10.2010




Santu Mukherjee (Audit Assistant) (24 Points)
Replied 14 May 2011

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.



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