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Interest on late payment of tds


24 October 2013 Sir
One of my Clients deduted Rs 5000 as TDS from Slaries on 31.12.2012 and remitted the same on 09.01.2013. Now a notice was received to remit Rs 150 being two months interest for the delay.Since the assesee in not clear how the delay of only two days will amounts to two months.Kindly give a reply in this regard
RGDS

25 October 2013 I Tax Deptt. has correctly and perfectly raised additional demand of Rs. 150 as Interest.

Interest rate is 1.5% per month.

In your case TDS was payable on 31.12.2012 and the Deptt allows SEVEN days with the condition it is paid within next seven days. As the amount was paid on 9th Jan so the interest has been calculated for two (Dec and Jan)months at Rs. 150.

The psychological fact is that many of us keep on waiting till last day. In your case your client missed the last date of 7th Jan and for two day delay is now equal to Rs. 150.

contact@vkbajaj.co.in



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