31 May 2011
The entry for TDS of Rs 27000 has been credited in the books on 31.03.2011 and the payment is done on 31.05.2011 so what will be the TDS interest
31 May 2011
According to new provisions; you have to pay interest for three months if you don't pay TDS within prescribed time limit i.e. 30 04 2011. . So Interest Payable would be Rs.1215/- in your case.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
01 June 2011
Surendra Sir please can you explain me in detail with date from which it has to be calculated.
01 June 2011
The provisions of Section 201(1A)(ii) are wonderful. . It reads as under : . .....after deducting fails to pay the tax as required......it shall be liable to pay simple interest : . ( i ) ...... . ( ii )at one and one-half per cent 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. . . See the words are FROM THE DATE ON WHICH such tax was deducted. . It means : Date of Deduction is 31 03 2011. So when you made delay, the penal provisions start from 31 03 2011 which means for a single day's delay, you have to pay interest for whole of the month. . . So now in your case you have to pay tax for FOUR MONTHS which comes to Rs. 1620/-. . . Many assessees were paying taxes only for one month upto 31 05 2011. . . What majority do; may not be correct. It is not a matter of voting ! . . If you could pay the tax upto 30 04 2011; then you could pay it without interest, but not now.
02 June 2011
If TDS has been paid on 31 05 2011 then interest would be for three months. . Please see my above reply. . I wrote on 01 06 2011 presuming that TDS is still not paid hence one more month's interest is payable.
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