TDS

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This discussion clarifies the due date for TDS on salary paid in May 2020, even if it relates to April's earnings. The consensus is that TDS is due on the actual payment date. It also addresses the interest charged for delayed TDS payments, explaining the rates applicable based on the delay and relevant notifications.

manisha

manisha (Querist)

24 July 2020 Dear Sir,

if April 2020 Salary paid in May 2020 and deducted tds then what is due date of TDS payment, is it 7th May 2020 or 7th June 2020

Please reply

CA Ankith Jain

CA Ankith Jain (Expert)

24 July 2020 TDS due date is 7th june. As per sec 192, TDS to be deducted only on actual payment of salary and not on accrual basis.

manisha

manisha (Querist)

25 July 2020 Dear Sir, Thanks for your reply, if we paid tds on 09/06/2020 delay of two days then interest need to be calculate or not

CA Ankith Jain

CA Ankith Jain (Expert)

25 July 2020 Yes, interest would attract at 1.5% per month from the date of deduction to actual payment.
Hence if you select the TDS deduction date as 31.05.2020, then interest would be 3%.

manisha

manisha (Querist)

25 July 2020 Sir, Thanks but interest rate will 9% pa if paid within 30.06.20 as per notification no.35/2020

manisha

manisha (Querist)

25 July 2020 Sir, Thanks but interest rate will 9% pa if paid within 30.06.20 as per notification no.35/2020

pls revert

CA Ankith Jain

CA Ankith Jain (Expert)

25 July 2020 Yes rightly said, the interest rate being 0.75% per month.
Hence, if you pay after 2 days, the interest rate turn out to be 1.5% (0.75+0.75).

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