Tds payment clarification

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2012 1. My client is a banker and credited interest as on 31st march, after deducting the TDS thereon, to the customer.
2. He has not remitted the interest but only credited to the customer a/c. TDS is remitted on 10th April by a challan.
3. IT Dept sent a notice for interest demand for delay in remitting of TDS stating due date is 7th April but as per my view it is 30th April since banker only credited the interest but not paid on 31st march.
4. Now Dept is a asking for revising the return by stating it as a book entry method.
5.But I can not revise the return as suggested by the IT Dept since book entry mode is applicable to Govt deductors only.
6. Is there any case law in this regard, to confirm that due date is 30th April but not 7th April in case of amount credited but not paid on 31st March.
7. Should my client pay the interest demanded by the Dept or submit rectification by quoting a case law to waive the interest demanded by the Dept.
Please guide me to act further

7.Thanks in advance

JIGAR DALAL

JIGAR DALAL (Expert)
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26 March 2012 If TDS Deducted & Deposited is on payment made on or before 31st March then TDS has to be deposited on or before 7th April. While if you have deducted TDS on provision Amount then Last Date will be 30th April