Tds deduct on lower rate
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 February 2015
Dear expert.
mistakenly i have deduct tds as per sec.194j which is allowed 10% but wrongly i have deducted 2%.
now i will have pay any interest or penalty.
mistakenly i have deduct tds as per sec.194j which is allowed 10% but wrongly i have deducted 2%.
now i will have pay any interest or penalty.
01 February 2015
You have to pay interest @1.5% on the amount of Short Deduction for the delayed period.
.
Example-
Amount Paid/credited on 31-10-2014 Rs. 100000 on which applicable TDS Rate is 10%.
.
On Short Deduction of Rs. 8000, you have to pay interest @ 1.5% for 5 Months (Oct, Nov, Dec,Jan, Feb).
.
.
Example-
Amount Paid/credited on 31-10-2014 Rs. 100000 on which applicable TDS Rate is 10%.
.
On Short Deduction of Rs. 8000, you have to pay interest @ 1.5% for 5 Months (Oct, Nov, Dec,Jan, Feb).
.
Message likes :
1 times
01 February 2015
For short deduction interest is @ 1% per month or part of the month. 1.5% is for late payment.
01 February 2015
Refer for details>
http://taxguru.in/income-tax/short-payment-short-deduction-tds-defaultsproblems-solutions.html
Thanks!!
@VaibhavJ
http://taxguru.in/income-tax/short-payment-short-deduction-tds-defaultsproblems-solutions.html
Thanks!!
@VaibhavJ
01 February 2015
Yes. Interest to be paid @1% per month or part thereof for late deduction of TDS. 1.5% is for late deposit of TDS i.e., when TDS is deducted but not deposited within due date. So you need to deposit the shortfall amount along with interest @1% per calender month.
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 February 2015
Respected all expert.
the bill amount was 50000/- it was professional service bill which allowed 10% deduction. but i have deducted only 2% only 2000/- instead of 5000/-
my Query is. i had deducted short. 3000/-
will i have to pay only 1.5% PA interest on this short amount. or have to pay this 3000/-
amount also.
the bill amount was 50000/- it was professional service bill which allowed 10% deduction. but i have deducted only 2% only 2000/- instead of 5000/-
my Query is. i had deducted short. 3000/-
will i have to pay only 1.5% PA interest on this short amount. or have to pay this 3000/-
amount also.
03 February 2015
Obviously you have to pay Rs 3000 being the amount of short deduction but this needs to be deposited along with interest for short deduction of TDS @1% per month or part thereof.
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