Interest on late payment of tds

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 If TDS is deducted on 31/12/2013 and deposited on 08/1/2014 how many months interest is payable?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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09 January 2014 Interest is required for 1 month
(even if it is less than 30 days)

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 Thank you for the prompt reply but in traces it is showing interest is payable for 2 months.

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CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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09 January 2014 when is deduction required (or tell me the transaction date)

& when you have deducted the TDS

& wat is the payment date

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 Transaction date and deduction date is 31/12/2013 and deposit date is 8/1/2014

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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09 January 2014 you would have given a wrong date in the TDS return

otherwise the since the payment is required to be made on 07/01/2014

delay of one day
since provision has changed one month interest has to be paid (as delay is counted from the date of deduction therefore there is delay of 8 days)

so there cannot be extension beyond one month