Dear Sir,
We have deducted Rs. 52854/- towards TDS on 31/12/2011. Since the payment due date 7th, 8th Jan was a saturday/ Sunday we deposited the amount on 9th Jan 2012 and paid late payment interest Rs.52/- for two days delay.
Now we have received a demand notice for Rs. 820/- towards Delay payment interest and interest on interest
For two days delay Is it correct? Please let me know.
its not correct IF YOU HAVE DEPOSTED THE SAME BEFORE DUE DATE...
OR PRIVIOUS DAY OF DUE DATE
| Originally posted by : Sumeet | ||
 |
its not correct IF YOU HAVE DEPOSTED THE SAME BEFORE DUE DATE... OR PRIVIOUS DAY OF DUE DATE |
 |
Sorry Sir,
TDS deduction date is 31/12/2011 - Due date for deposit is 7/1/2012 was a Saturday and 8th was Sunday.
Amount Deposited on 9/01/2012 with two days delay interest of Rs. 52/-
Department calculated interest Rs. 793/-
Is it correct?
interest charged will for 1 month i.e. 1.5% of 52854= 792 plus 3% of 792 comes to 816 , & round off comes to 820
dept's demand notice is correct........
sir what to do if i am getting a letter to file correction return with notice of demand fo lwer tds deduction and payment.
even for a single day delay, tds has to be paid for month... as defination include part or part there off. yes u need to deposit accordingly
Dear Tirupurari,
Kindly visit the relevant ITO-TDS and ask for the details of mistakes/mismatches. I believe a part of this info is also available on TIN-NSDL website now (i am not sure of this part as I haven't done a TDS return correction in last one year).
Generally, the ITO shall provide you with the details of mistakes in print out/ soft copy. On basis of the same you may correct the TDS return. In case any mistake pointed by ITO has been wrongly pointed out or is on account of wrong judicial interpretation, you may submit written submissions in respect to the same.
Normally the above process should take care of the demand raised. However, if some portion of deman raised is on account of actual short deductions by the deductor, the same has to be paid off.
If you are not satisfied byt he final order passed by ITO-TDS, you have the option of filing appeal with CIT (Appeals) TDS
Thanks for the advise dear nikhil
| Originally posted by : CA Lokesh Pokharna | ||
|
|
interest charged will for 1 month i.e. 1.5% of 52854= 792 plus 3% of 792 comes to 816 , & round off comes to 820 dept's demand notice is correct........ |
|
agree with CA lokesh....but i wanna know why this 3% added in 792???
Dear Karan,
3% is the EC and SHEC
ok...thanx
CAclubindia
