Tds return interest rate

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Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2011 Dear sir,
Please provied the late tds return filing interest rate and penalty.

thanks
P.K.sharma

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 December 2011 If a person fails to deduct the whole or any part of the tax at source, or, after deducting, fails to pay the whole or any part of the tax to the credit of the Central Government within the prescribed time, he shall be liable to action in accordance with the provisions of section 201. Sub-section (1A) of section 201 lays down that such person shall be liable to pay simple interest

Interest Rate w.e.f 01-07-2010

(i) at one percent for every month or part of the month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted and

(ii) at one and one-half percent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid. Such interest, if chargeable, has to be paid before furnishing of quarterly statement of TDS for each quarter.

There is a penalty provision of100 per day, for delayed filing of Quarterly statement under TDS or TCS.

Apart from this penalty u/s 221 may be levied by the Assesing Officer for late deposit of TDS subject to maximum amount of TDS involved.

anurag

anurag (Expert)
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22 December 2011 Agree with the expert, new provisions are applicable from 1st July 2010.
if u have a software than it will easily calculate interest for u.

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