Late deposit of tds

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Abhinav (Querist)
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04 May 2013 Interest was paid on 31.03.2013 and TDS was deducted bot not deposited. Actually TDS will be deposited by 10th May, 2013. So what will the interest on TDS to be deposited???

CA Alexandar Gazi

CA Alexandar Gazi (Expert)
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05 May 2013 Mr. Abhinav,

Under rule 30 (2) of the Income Tax Rules,1962 TDS deducted in the month of March by a person (not being an office of the Govt.), should be deposited by 30th April.

U/S 201(1A) of the Income Tax Act, 1961, for failure to deposit TDS amount (after deduction) in due time, an iterest @1.5% would be charged for per month or part of a month.

Point to be carefully read, interest @1.5% per month or part of a month.

Even dealy for fraction of a month, 1.5% interest would be charged.

It is understood from the question, you have deducted TDS in the month of March. It should have been deposited latest by 30th April. Therefore, delay is for 10 days.

Your interest liability would @1.5% of the TDS amount.

Thanks,
Alexandar Gazi