Interest on tds

This query is : Resolved

kunal (Querist)
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28 March 2013 sir please tell is there any provision regarding interest on interest of tds..

e.g. tds payable = Rs 10,000
Interest payable= Rs 3,000

BUT assessee paid Rs 12,000

now income tax department demanding Rs 1600 (including interest on interest )

thanks in advance!!!

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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28 March 2013 Normally if you pay less than the amount due they first recover the interest then tax.

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kunal

kunal (Querist)
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28 March 2013 BUT IT WAS CLEARLY SHOWN IN 24-Q THAT RS 10,000 WAS TAX DEDUCTED AND DEPOSITED

RS 2,000 WAS INTEREST ON LATE PAYMENT

actually assessee calculated interest @ 1% instead of 1.5%

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