Interest on Late TDS payment
Sandeep Sharma (Accounts executive) (552 Points)
17 July 2019
How many months will be considered of the tds deducted of 30/4/19 is deposited on 8/5/19?
12 Replies
Sandeep Sharma
(Accounts executive)
(552 Points)
Replied 17 July 2019
And say if tds deducted was on 24.04.19
SSC CGL EXAM
(33 Points)
Replied 17 July 2019
late TDs payment to center gov if u r deductee is 1.5 % per month or part of the month. if you didn't deducted tax then the rate of interest is 1% per month or part of the month.
failure to deliver statement within prescribed time then minimum penalty is 10000. maximum is 100000rs. under section 271 h
failure to deliver statement within prescribed time then minimum penalty is 10000. maximum is 100000rs. under section 271 h
Mehul porwal
(266 Points)
Replied 17 July 2019
For the month of April due date is 07/05. If it is paid beyond that upto 30/05 it will be counted as one month.
Sandeep Sharma
(Accounts executive)
(552 Points)
Replied 17 July 2019
But experts say that it is counted as two months
Sonukumarsahu
(article )
(24 Points)
Replied 17 July 2019
If TDS is Deducted and not Paid within due date then interest shall be 1.5% on TDS amount.
Months shall be considered from the date of Deduction to date on which TDS is Deposited to govt.
in this case, due date is 07/05 but he deposited the same on 08/05 .
interest will be charged for one month
Gunasekaran V
(CEO)
(40 Points)
Replied 17 July 2019
Yes, if we are depositing 1 month interest means, we can get the default notice. If we are making 2 months interest means, the quarterly return get cleared. It's my personal experience.
GUNASEKARAN V
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 23 July 2019
1. Sec 201 deals with the consequence of failure to deduct or pay TDS. According to sec 201(1A)(ii), any person who deducted TDS but fail to remit the same then Simple Interest @ the rate of 1.5% p.m or part of a month shall be payable from the date of deduction to the date on which such amount is actually paid.
2. From the above reading it very clear that interest @ 1.5% p.m shall be charged from the date of deduction to the date when such amount of actually paid.
3. In your case interest, @ 1.5% pm will be charged from April (30.04.2019) and resultantly it becomes 2 months. It makes no difference even if it is paid in the same month on which it should have originally been remitted.
Please correct me if the above interpretation has an alternative view.
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