TDS due date

(Guest)

Dear Uthra, if the due date is a public holiday, the payment should be made on day before due date.

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 17 November 2007

I have doubt, about opinion of Mr. Teza. I think general clause act should apply here and next working day should be traeted as due date.

KAUSTUBH M JOSHI (Accountant) (297 Points)
Replied 17 November 2007

Dear friend, I think the day before the such date should be the due date for payment. For clarification please feedback.

KAUSTUBH M JOSHI (Accountant) (297 Points)
Replied 17 November 2007

Respected Sir, I will be happy to clear my ideas with an example.

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 17 November 2007

Plz. go through sectiuon 10 of the general clause Act, 1897.

Samir (Chartered Accountant) (145 Points)
Replied 19 November 2007

I do agree with CA Omprakash Agarwalla. Regards,

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 19 November 2007

When due date falls on a bank holiday - If the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed due to the day being a holiday, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C would not be charged—Circular : No. 676, dated 14-1-1994.

(Guest)

Originally posted by :uthra
"	TDS is to normally remitted before 7th.. what happens if 7th is a a sunday?? should it be paid on 6th or 8th is ok?? reply asap!!!!!!!	"

vanita (employed) (43 Points)
Replied 17 October 2008

Circular 676 speaks about "ADVANCE TAX INSTALMENT" & not TDS.

Can circular 676 still be extended to TDS??

Reply soon!!!

Pradeep (Sr exe) (22 Points)
Replied 12 April 2009

i agree with vanita

jaya (article) (22 Points)
Replied 20 May 2009

kindly provide information regarding Circular No:676 Dated on 14-01-1994 as this circular is related to Advance Tax will it be applicable to TDS also?

Deepak Jain (CA) (69 Points)
Replied 07 June 2009

I am reproducing circular 676 dated 14-01-1994 which was issued for clarifying that interrest u/s 234 B,234C will not be applicable in such a case.

In such cases section 10 of the General Clauses Act, 1897 will be applicable. This section lays down that where any Act or proceeding is directed or allowed to be done or taken in any Court or office on a certain day or within a prescribed period, then, if the Court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the Act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the Court or office (or the bank) is open.

In view of above it is clear that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the no interest can be charged under Income-tax Act, 1961 .

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Representations have been received by the Board seeking waiver of interest chargeable under sections 234B and 234C of the Income-tax Act, 1961 for default in payment of instalments of advance tax by the due dates which are prescribed under section 211 of the Income-tax Act. In cases where the last date for making payment of such instalments (i.e., 15th September, 15th December and 15th March) happens to be a holiday and the assessee pays the due amount of advance tax on the next working day.

In such cases section 10 of the General Clauses Act, 1897 will be applicable. This section lays down that where any Act or proceeding is directed or allowed to be done or taken in any Court or office on a certain day or within a prescribed period, then, if the Court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the Act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the Court or office (or the bank) is open. In view of this provision,

In view of above it is clear that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the no interest can be charged under Income-tax Act, 1961 .

2. The matter has been carefully considered by the Board and it is felt that in such cases section 10 of the General Clauses Act, 1897 will be applicable. This section lays down that where any Act or proceeding is directed or allowed to be done or taken in any Court or office on a certain day or within a prescribed period, then, if the Court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the Act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the Court or office (or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961 would not be charged.

Circular : No. 676, dated 14-1-1994.