Tds deduction on salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2015 Dear all
i have given RS. 25000 Fixed salary to one of my employee in FY 2014-15 but mistakenly i have not deducted TDS since 1/4/2014 in the march one of tax expert has suggested to deduct the TDS then in march i have made computation..
25000*12= 300000
less 250000
Taxable salary 50000*10=5000. and i have also consider the rebate of RS. 2000 u/s 87A hence total tax liability was 3000. i have deducted RS. 3000 TDS. but i want to know will i have to pay 12% interest for non deducting TDS since 1/4/2014..

please clarify..

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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13 April 2015 You have to deduct Tax PLUS Cess @3% on Tax Payable.

You need not pay any interest since you deducted TDS during March month. Deposit it within 30th of this months to avoid interest.

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 Dear john sir. are you 100% sure i need not to pay any interest for non deducting TDS since 1/4/2014.

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CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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15 April 2015 The real position is, you have to pay TDS from the first month onwards. At the beginning, you will have to calculate the expected pay-out to your employees and calculate their Income Tax liability after considering the declaration on deductions filed by the employee. However, it is a practice at small assessees to deduct TDS at the end of the FY and pay it to Govt.
This is the position.

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 Dear sir
but i have not deduct tds from the beginning i have deducted in march. not please confirm me whether i have to pay interest or not.

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 not was wrongly typed..

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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15 April 2015 No. You need not pay interest on late payment of TDS.

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 sir. plz confirm will it not be consider as late TDS deduction. and interest is be paid 1% PM u/s 201

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CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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15 April 2015 Please check once more, I was talking about late PAYMENT of TDS and not late deduction.
Please ignore late deduction. It will be a meager amount and IT Dept never used to make problems against smaller issues.