Interest on t.d.s.
This query is : Resolved
06 October 2011
SIR,
ON THE LATE DEPOSITION OF T.D.S. WHAT RATE OF INTT. WILL APPLICABLE AND FOR WHAT PERIOD . FOR EXAMPLE. IF I DEDUCT THE T.D.S OF A CONTRACT ON THE DATE 27.08.2011 T.D.S AMOUNT 15,000/- AND DEPOSIT ON THE DATE 05.10.2011. HOW MUCH INTT. WILL CHARGED .
ON THE LATE DEPOSITION OF T.D.S. WHAT RATE OF INTT. WILL APPLICABLE AND FOR WHAT PERIOD . FOR EXAMPLE. IF I DEDUCT THE T.D.S OF A CONTRACT ON THE DATE 27.08.2011 T.D.S AMOUNT 15,000/- AND DEPOSIT ON THE DATE 05.10.2011. HOW MUCH INTT. WILL CHARGED .
06 October 2011
TDS deducted in the month of August should be deposited on or before 7th of next month. Otherwise interest @ 1.5% per month or part of the month from such tax is deducted till the date of actual deposit. So, interest will be 15000*1.5% for two months i.e. Rs. 225*2 = 450
06 October 2011
BUT SOME EXPERTS VIEWS THAT IT SHOULD BE CHARGED FOR THREE MONTH INSTEAD OF TWO MONTHS AS PER INCOME TAX SECTION 201(1A),
PLEASE CLEAR IF YOU HAVE MORE DETAIL FOR THE SAID SECTION, I WILL BE THANK FULL TO YOU.
PLEASE CLEAR IF YOU HAVE MORE DETAIL FOR THE SAID SECTION, I WILL BE THANK FULL TO YOU.
06 October 2011
Interest applicable from the date of deduction to date of payment So
Need to be paid 3 months interest. Deducted Aug- 1 Month, Sep- 1 Month & Oct- 1 Month = 3 months so 4.50% interest need to be paid
Need to be paid 3 months interest. Deducted Aug- 1 Month, Sep- 1 Month & Oct- 1 Month = 3 months so 4.50% interest need to be paid
07 October 2011
Mr. Ramesh ,
can you please provide me any notification or circular for the said subject. as you are right that income tax department has issued demand on the three month basis (as you replied) .
can you please provide me any notification or circular for the said subject. as you are right that income tax department has issued demand on the three month basis (as you replied) .
08 October 2011
In section 201 of the Income-tax Act, for sub-section (1A), the following sub-section shall be substituted with effect from the 1st day of July, 2010, namely:—
“(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section 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,—
(i) at one and one-half per cent. for every month or part of a month on the amount of such taxfrom the date on which such tax was deducted to the date on which such tax is actually paid, and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.”.
“(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section 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,—
(i) at one and one-half per cent. for every month or part of a month on the amount of such taxfrom the date on which such tax was deducted to the date on which such tax is actually paid, and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.”.
08 October 2011
SIR, ALL ARE TRUE BUT THERE IS NOT CLEAR THAT IF WE DID NOT DEPOSIT T.D.S. ON OR BEFORE 7th of the month. rebate of the days will disallowed and interest will charged from day one i.e. tds deducting date 15.08.2011 and tds deposit on 12.09.2011 ( instead of 07.09.2011) then interest will charged for two months. sir I will be happy for your good reply.
10 October 2011
In income tax, whenever it talks about month, only date to date is to be considered.
For example, August 27, 2011 to Sept 26, 2011 is one month and from Sept 27, 2011 to Oct 26, 2011 second month.
Hope it clarifies.
For example, August 27, 2011 to Sept 26, 2011 is one month and from Sept 27, 2011 to Oct 26, 2011 second month.
Hope it clarifies.
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