Interest on late deposit of TDS after timely deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2010 If the deductor deduct tax u/s 194I at the time of payment of the monthly house rent to the deductee and the said TDS is deposited into the c.govt. a/c at the END of the relevant financial year in agreegate for all the 12 months as a single installment,then whether intersest for the delay of depositing the TDS for the first 11 months should be paid by the deductor along with the TDS.

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

06 February 2010 yes he will pay interest 1% p.m. for every month TDS so for first month interest will be for 11 month for next month interest will be for 10 month and so on.

Rahul Vora

Rahul Vora (Expert)
Follow

06 February 2010 Definitely interest is to be paid

Upgrade to CAclubindia Pro. Subscribe Now!

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
Follow

06 February 2010 u have to paid intreat

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2010 Thanks for your replies.

Rahul Gupta

Rahul Gupta (Expert)
Follow

06 February 2010 Yes MR. Prashant is Right. Relevant Provisions in the act are Section 201.

Section 201>
If any person, principal officer or company does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid and such interest shall be paid before furnishing the statement.