hi sir i have one query abt interest payable on late payment of tds
i.e. at what % & how the period will be calculated
3 Replies
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 18 April 2009
1% for every month or part of a month i.e. from the date when tax was deductible till the date tax is actually paid. Sec 201(1A)
Sandeep Keswani
(Tax Consultant)
(1064 Points)
Replied 18 April 2009
Mr. Mohit is right. TDS is to be deducted on date of giving credit or date of payment, whichever is earlier. If u fail to deduct TDS on the said date, interest @ 1% p.m. is chargeable for every month or part of month, till actual payment of TDS is made to government.
Further, if TDS is deducted in time, BUT payment of the same is not made to the govt., in that case also, interest @ 1% p.m. will be chargeable for every month or part of month, until the payment is actually made.
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