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Penal Interest on TDS

CA. Praveen (Chartered Accountant) (119 Points)

17 July 2011

Dear Friends,

Kindly let me know the penal Interest for NON Deduction of TDS and also TDS Deducted but not remitted to Govt. (Please refer Finance act (Amended), 2010 and clarify)

Eagerly Waiting for replys.

Praveen RS

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5 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 17 July 2011

If TDS is not deducted on the expense, then the expense shall be disallowed.

The penal interest for late deposit of TDS is 1.5% p.m from the due date till the date of payment.

Regards,

Devendra K

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 17 July 2011

Originally posted by : Devendra
	If TDS is not deducted on the expense, then the expense shall be disallowed. The penal interest for late deposit of TDS is 1.5% p.m from the due date till the date of payment. Regards, Devendra K

AGREED.

Yogi Saraf (Audits & Taxation) (86 Points)
Replied 17 July 2011

Agreed with devendra, would like to add that if there is DELAY IN DEDUCTION then the penal interest would be 1% p.m.

CA. Praveen (Chartered Accountant) (119 Points)
Replied 22 July 2011

Thanks for the knowledge shared.

I would like to share the following same with u people:

Penal Interest will be charged 1% form the date of non deduction of TDS to the date of deduction and also

1.5% will be charged for non remittence of TDS deducted but not remitted to Govt.

Other views are anticipated

anony (MANAGER) (145 Points)
Replied 22 July 2011

Originally posted by : Praveen r s

Thanks for the knowledge shared.

I would like to share the following same with u people:

Penal Interest will be charged 1% form the date of non deduction of TDS to the date of deduction and also

1.5% will be charged for non remittence of TDS deducted but not remitted to Govt.

Other views are anticipated

INTEREST @ 1% PER MONTH OR PART THEREOF WILL BE CHARGED FOR THE PERIOD OF DEFAULT IN TDS DEDUCTION ( DATE OF PAYMENT/CREDIT TO DATE OF ACTUAL DEDUCTION OF TDS)

INTEREST @ 1.5 % PER MONTH OR PART THEREOF WILL BE CHARGED FOR THE PERIOD OF DAFAULT IN PAYMENT OF TDS. ( DATE WHEN TDS HAS ACTUALLY BEEN DEDUCTED TO DATE OF DEPOSITTING TDS)