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Date of deduction and date of payment

05 December 2017

Can anyone explain me what is the differencebetween Date of Payment and Date of Deduction at the time of Quarterly file returns. I got a penalty of 1% for difference in dates of both Date of Payment and date of Deduction.

Help Me Please

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Saifudeen Khan (3 Points)
Replied 06 December 2017

I have attached file of Justification report received from Traces, Can anyone explain me.

Please suggest regarding Justification report

Attached File : 1887868 20171206205958 blrt11907a 26q q2 2017 18.xls downloaded: 83 times

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Prajjwal Kaushik (Finance Professional) (6216 Points)
Replied 14 December 2017

I had a look at the justification report that you have attached. To understand why you have been charged an interest of Rs. 190, you have to understand the basic provisions of TDS.

As per provisions of the Income-tax Act related to TDS, Tax has to be deducted on the date when payment has been made for the respective expense.

Also, as per section 201, if any person who is liable to deduct tax at source does not deduct it or after so deducting fails to pay, the whole or any part of the tax to the credit of the Government, then, such person, shall be liable to pay simple interest as given below:

Interest shall be levied at 1% for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax was deducted.

Here the date on which such tax was deductible shall be the date of payment.

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