Tds interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2015 Sir,
firm has already filed First and Second quarter TDS returns for A.Y 15-16 but fail to deduct tds on rent payment from april -14 how much interest should be paid by firm if 20000 monthly rent paid for cold storage (from april- 14)

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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06 January 2015 Since you fail to deduct TDS in its due dates you need pay interest @ 1% per month till the date default continue, as per section 201(1A).
For Example. Rs 2000 need to be deducted in April'14, but actually deducted in month September'14. The Interest liability will be Rs. 120/- (2000 x 1% x 6).

You can yourself calculate the interest liability by referring the above example.
Regards

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Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2015 1% MONTHLY INTEREST ON TDS SHOULD BE PAID TILL JAN-15 ( TDS DEDUCTION DATE IS 01/01/2015) .1.5% interest is applicable if TDS DEDUCTED IN JAN-15 AND ALSO DEPOSITED IN JAN-15 (IN ABOVE CASE)

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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06 January 2015 No If Tax is deducted in month of Jan'15 then the due date will be 7th of February'15 in that case if Tax is deposited withing said date then no interest liability will arise.

However, if the same is paid even one day after said date, then interest @ 1.5% per month will be required to be paid for two month i.e. For January And February.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2015 XYZ PARTY PAY RENT TO IT'S PARTNER 20000 P.M FROM 01/04/2014. TDS LIABILITY ARISE AFTER CROSSING 180000 LIMIT I.E. FROM JAN-15 ON WARDS OR HAVE TO CUT FROM APRIL-14

PLEASE REPLY AS EARLY AS POSSIBLE

THANKS IN ADVANCE

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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07 January 2015 You need to deduct TDS on whole amount of rent paid to partner, TDS require to be deduct on Each transaction.

If failure to do you need to pay interest under section 201(1A)