Is revised return required

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 Dear Experts,

Our company have a bill of calibration charges on which TDS will be applicable, but we do not deduct TDS on it, now we deduct TDS on current date, In this condition we have need to file revised return or just pay the interest amount and show in 3rd quarter TDS return.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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30 October 2012 Yes, U can pay the interest for non-deduction of TDS and show the same in 3rd Quarter TDS Return as it falls in same financial year.

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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30 October 2012 You Need to File revised Return if Deducting in Second Quarter.

Otherwise You May File in 3rd Quarter Also, Showing Interest on late deduction & Late payment.

If You File in 2nd Quarter Then You May Escape From Late deduction Interest.

But If You File in 3rd Quarter Then Late deduction Will Also be Charged That is 1%.
& Late Payment is 1.5%.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 Thanks to both of you, to file return in 3rd quarter is best

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 Dear Ayush

Please explain me calculation of interest
like my TDS deduction liability raise in september month and i deduct TDS in october and want to payment in december what will be the interest amount.

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 Dear Ayush

Please explain me calculation of interest like my TDS deduction liability raise in september month and i deduct TDS in october and want to payment in december what will be the interest amount.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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01 August 2024 If you have deducted TDS after the due date, you need to address both the late deduction and late payment of TDS. Here's how to handle it and calculate the interest:

### Revised Return vs. Quarterly Return
1. **Late Deduction of TDS**: If TDS was not deducted in the month it was due but was deducted later, you must pay interest for the late deduction.
2. **Late Payment of TDS**: After deducting the TDS, if the payment to the government is delayed, you will also have to pay interest for the late payment.

### Interest Calculation for Late Deduction and Payment of TDS
- **Interest for Late Deduction**: Under Section 201(1A) of the Income Tax Act, interest is calculated at 1% per month or part of the month from the date on which tax was deductible to the date on which tax is actually deducted.
- **Interest for Late Payment**: Interest is calculated at 1.5% per month or part of the month from the date on which tax was deducted to the date on which tax is actually paid.

### Example Calculation
1. **Date of Deduction Liability**: September 15th
2. **Actual Date of Deduction**: October 10th
3. **Actual Date of Payment**: December 15th

#### Late Deduction
- **Period of Delay**: September 15th to October 10th (1 month)
- **Interest Rate**: 1% per month

#### Late Payment
- **Period of Delay**: October 10th to December 15th (2 months, counted as parts of the months)
- **Interest Rate**: 1.5% per month

Assume the TDS amount is ₹10,000.

**Interest Calculation:**
1. **For Late Deduction:**
- 1% of ₹10,000 = ₹100 (for 1 month)

2. **For Late Payment:**
- 1.5% of ₹10,000 = ₹150 (for 1 month)
- For 2 months = 2 * ₹150 = ₹300

**Total Interest Payable:**
- Late Deduction: ₹100
- Late Payment: ₹300
- **Total**: ₹400

### Filing TDS Return
- **Revised Return**: If the TDS return for the quarter in which the deduction was due (Q2, ending September 30) has already been filed, you will need to file a revised TDS return for that quarter to include the late deduction and payment.
- **Current Quarter Return**: Alternatively, you can report the TDS deduction and payment in the current quarter's return (Q3) if you prefer not to file a revised return.

### Conclusion
1. **Interest Calculation**: Calculate interest for both late deduction and late payment.
2. **Revised Return**: File a revised return for the quarter in which the deduction was due if the return has already been filed.
3. **Current Quarter Return**: Alternatively, include the details in the current quarter's TDS return.

Consult with a tax professional or a chartered accountant to ensure compliance and correct calculation of interest.