Penal Interest on TDS

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

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.

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

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

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)