Interest calculation on late payment of TDS
This query is : Resolved
06 April 2011
Dear Friends
Please resolve my below doubt.
Suppose I made a payment u/s 194C on 28/Feb/2011 and tds has also been deducted on 28/Feb/2011. But i deposited this tds to the govt. treasury on 02/April/2011. Now my query is that interest @ 1.5% for late deposit u/s 201(1A) will be levied for how many months ?
Regards
M N Jain
Please resolve my below doubt.
Suppose I made a payment u/s 194C on 28/Feb/2011 and tds has also been deducted on 28/Feb/2011. But i deposited this tds to the govt. treasury on 02/April/2011. Now my query is that interest @ 1.5% for late deposit u/s 201(1A) will be levied for how many months ?
Regards
M N Jain
06 April 2011
Three months interest has to be paid. Calculation ,as per my understanding is as follows:-
28/2/2011 -- 1 month
1 to 31/3/2011 -- 1 month
1 to 2/4/2011 -- 1 month
--------
Total -- 3 months
========
28/2/2011 -- 1 month
1 to 31/3/2011 -- 1 month
1 to 2/4/2011 -- 1 month
--------
Total -- 3 months
========
Message likes :
2 times
06 April 2011
from 28/Feb/2011 to 27/Mar/2011 : 1 Month
28/Mar/2011 to 02/Apr/2011 : 1 Month
So it will be 2 month.
28/Mar/2011 to 02/Apr/2011 : 1 Month
So it will be 2 month.
Message likes :
1 times
06 April 2011
Interest from 01.07.2010
For late deposit of TDS after deduction (period :date from tax deducted and date of actual deposit)(rate 1.5 % per month or part thereof)
Here the default period is calculated from date of deduction to actual date of deposit.
So the calculation is from date to date...
Interest from 01.07.2010
For late deposit of TDS after deduction (period :date from tax deducted and date of actual deposit)(rate 1.5 % per month or part thereof)
Here the default period is calculated from date of deduction to actual date of deposit.
So the calculation is from date to date...
06 April 2011
My doubt is still open since my confusion is also between two months or three months ?
I am not able to reach at a concrete decision as to whether interest should be charged for two months or thre months ?
May i have some more views ?
Regards
M N Jain
I am not able to reach at a concrete decision as to whether interest should be charged for two months or thre months ?
May i have some more views ?
Regards
M N Jain
Message likes :
1 times
06 April 2011
It should be two months. Further there is not clarity in the section 201(1A) but i still go with the one which is beneficial to the assessee
Message likes :
1 times
10 July 2013
Section 201(1A) is not Clear.
Because earlier It was month or part of month.
means february month to be counted as one month.
and calculating as per Mr. Jha is in indirect taxation for days basis.
but as per my understanding of line given in said section, it should be understood that 3 Months interest to be taken.
in income tax calender month to be taken for interest calculation. (not days basis)
Because earlier It was month or part of month.
means february month to be counted as one month.
and calculating as per Mr. Jha is in indirect taxation for days basis.
but as per my understanding of line given in said section, it should be understood that 3 Months interest to be taken.
in income tax calender month to be taken for interest calculation. (not days basis)
10 July 2013
Now as eTDS returns have been processed interest will be liable for 3 months and not 2 months as stated by me earlier.
10 July 2013
I Agree with B.chackrapani warrier as its the perfect interpretation, as even 1 day is taken as month for calculating interest.
10 July 2013
can any one send me notice whoever received of three months. pls.
at my mail id.
at my mail id.
10 July 2013
Refer V K Singhania direct tax law and practice u will get many eg.
10 July 2013
pls can you send me any link of the same.
by highlighting the portion.
by highlighting the portion.
10 July 2013
sorry i do not have any soft copy of VK singhania.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- Defective Return - Tds on advance
- Income Type for interest from government bonds
- TCS ON SOFTWARE SALES
- Not a CA , can we prepare balance sheet
- Valuation of diamonds as on 01.04.2001
- What is meaning of merging of expenses or income in accounts
- Accounting treatment of write off sundry debtors
- Gstr 9 2023-24
- GSTR-9 HSN Summary and Credit Note without item
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- GST RCM not shown in GSTR-3B
- Bill from Dispatched from issue.
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
