Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2013 Date of deduction: 18/7/13
Date of deposit : 7/9/13
Date of filing TDS Return for Q2 : 17/10/13

No of months delay for Interest on late payment : 18/7/13 to 7/9/13 - 3 mths @1.5 %
No of months delay for Interest on late filing :15/10/13 to 17/10/13- 1 mnth @1%

Please guide me whether i am right/wrong ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 October 2013 Interest on late payment 2 months @1.5% per month.

Fees for late filing of TDS return u/s 234E @ Rs 200 per day i.e., Rs 400/-

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2013 Thank u sir..!!
But Sir can u pls explain how is it 2 mnths for late payment bcoz it is from date of dedn to date of deposit..!!

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@VaibhavJ

@VaibhavJ (Expert)
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18 October 2013 Hi

Section 201(1A) prescribes that "Interest @1.5% (for every month or part of a month) is to be paid from the date on which such tax was deducted to the date on which such tax is actually paid."

So .. Interest on late deposit of TDS is applicable @ 1.5 % per month or part thereof. The period for delay is taken from date of deduction to date of deposit. So, in specific cases a delay of one day may lead to pay interest @ 3 % .

Suppose:
TDS deducted on 01.08.13.
In this case, due date will be 07.09.13.
If we deposit tax on 08.09.13, one day delay.

Interest will be applicable for 2 months – From 01.08.13 (date of deduction) to 08.09.13 (date of deposit) for two months @1.5 % p.m=3%

So,, in your case interest will be applicable for 3 months.

Thanks//VaibhavJ

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2013 Thank u sir...!!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 October 2013 Dear Vaibhav please check i think interest on late deposit will be for two months only since 18/07/2013 to 07/09/2013 is less than 2 months.