Tax deducted at source

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2012 In case of NBFC, TDS was deducted on the interest at the year end inspite of having the loan track giving bifurcation of monthly interest & principal.

Also the TDS was deposited vide a single challan.

Can this single challan be effected in the Q4 TDS return?

If not, what is the best remedy?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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24 September 2012 Yes.. If the interest is due yearly then TDS will be deducted on year to year basis.
The TDS will be reflected in q4 TDS return.

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2012 However the TDS is due on monthly basis as we have the bifurcation on a monthly basis of the principal & interest...

What will be the course of action

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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24 September 2012 Do you book income on monthly basis?? Also, if it is paid by the party on monthly basis or if it is compounded on monthly basis then only TDS will be deducted only monthly basis.

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2012 If the loan is paid on a monthly basis(principal+interest) , should the interest not be booked on a monthly basis

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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24 September 2012 If the interest is paid monthly then TDs is to be deducted on monthly basis.

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 Coming back to the first question posed what is the course of action if the TDS deducted is deposited vide a single challan at the end of the year.