Late Payment of TDS

This query is : Resolved

shoeb parwaiz (Querist)
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24 December 2010
Dear All,

I wanna know what is the rate of interest, if TDS is deposited late. I would be grateful if you give me explanation with any example.

Thank & regards

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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24 December 2010 pay 1.5% interest per month.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 December 2010 Interest on late deposit of TDS @1.5% per month or part thereof.(w.e.f 01.07.2010, earlier the rate was 1% p.m.)

Say you deducted TDS of Rs 10000/- on 10th Nov 2010 due date of depositing the TDS is 7th Dec 2010 if deposited after 7th Dec 2010 but on or before 10th Dec you will have to deposit Rs 10150/-(TDS Rs 10000/- & Interest Rs 150/-). If deposited after 10th Dec 2010 Interest will be levied for 2 months i.e. 3% and you will have to deposit Rs 10300/- as 1 month has elapsed from the date of deduction.

Hope it is clear.

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