Tds query

This query is : Resolved

salim (Querist)
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20 February 2015 Please guide me on how to calculate the interest portion on TDS. whether it is from the Deduction Date to Actual Deposit Date.
One more Query is Deduction date is the date on which passing a Journal entry & what will be the consequences for late deduction???? Please please reply me

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 February 2015 Interest for late deposit of TDS @1.5% per month.

Example:

1) TDS deducted on 31.01.2015 but deposited on 08.02.2015. Here unfortunately you will have to pay interest for 2 months i.e., for Jan & Feb.

2) TDS deducted on 01.01.2015 but deposited on 28.02.2015. Here also you will have to pay interest for 2 months i.e., for Jan & Feb.

Interest on late deduction of TDS @ 1% per month.

1) Payment made or Credit entry made on 15.11.2014 but TDS was not deducted. Now TDS deducted on 01.01.2015 and deposited on 07.02.2015. Here interest to be paid on late deduction of TDS for 3 months i.e., Nov, Dec & Jan.

Rupesh Jain

Rupesh Jain (Expert)
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20 February 2015 after deduction tds not deposited then from date of deduction to deposit date you have to pay intt @1.5% per month.
and if you not deduct the tds then from date to of credited to dedcution date intt will be 1% per month.

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