TDS & Interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 monthly v pay a person 25k...v realise later need of TDS so from sept 2010 v start tds deduc to that person for whole yr till say march 2011 computing on annual salary say 3lac. tds deduc and payment start from sept 2010. if do this there is poss to escape interest liab for earlier months. any prob on this way?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 September 2010 Better you calculate the interest from the date of actual tds deductible and pay to avoid notice from TDS circle

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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08 September 2010 Take a investment declaration from the employee of some date of April.

With the exemptions & deductions available in the Income tax act, make his annual tax liability as NIL.

Take a revised investment declaration from him (with the actual figures) , somewhere in August.

This will justify, your stand of not deducting TDS till august. & the revised declaration will justify your TDs calculation with retrospective effect.

In this way... you can escape the interest charges on TDS from April to August

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