Tds interest

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regarding the TDS @ 1% and 1.5% per month.

in case of salary kindly clarify if say for eg) salary for the month of january is paid not by the end of the month but on 7th of febrarury (cheque is issued) in that case kindly clarify whether tds can be deposited by 7th march as per the act or rules (correct me if I am wrong) the tds has to be deposited withinn 7 days from the last date of the month in which TDS is deducted and as per section 192 tds is deducted on actual payment (not on credit or payment whichever is earlier)

can we avail this option?

if tds not deducted for salary paid from the month of june to the month of december and all the tds has been deducted in the month of january only (from june to december including january)

if for eg) tDS amount from june to december is Rs.50000

tDS only for the month of january is Rs.5000

and the whole Rs.55000 will be deposited by feb 7th 2012.

Salary is always paid on the 7th day of next month in which salary is due.

Kindly the total amount of interest @ 1% and also the interest amount calculated @ 1.5%

 

Replies (1)

TDS u/s 192 is deducted only at the time of actual payment. Since the Jan month salary is paid on 7th Feb, TDS is to be deducted on 7th Feb and it is to be deposited by 7th Mar.

 

As you mentioned TDS has not been deducted from the Salary paid in Jun to Dec in their respective month but has been deducted in Jan month. You are liable for interest @ 1% from the Date of Actual Payment (Not from Due date) to the Date of Actual Deduction. Please provide the complete details (including dates and amount) for calculation of exact interest.


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