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Tds interest

POONAM (article assistent) (71 Points)

31 March 2014

I had not deducted tds on some amount ...but now I realised that it has to be deducted ... now I have consider 1.5% p.m interest as late deposit of tds from the date of deduction till date of payment ... in the above case is interest on late deduction as well as interest on late deposit both applicable?

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9 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 31 March 2014

Yes both intt will be calculated as per section 201. Please check the calulations in this case.

Regards

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POONAM (article assistent) (71 Points)
Replied 31 March 2014

TDS section is 194 j.. Amount = 30000 Tds=3000 Date of deduction= June 2011 Date of payment = today (before march) Interest on late deduction = 3000*1%*34=1020 Interest on late deposit = 3000*1.5%*4=1530 So total amount which I have to pay =5550 Am I correct? And can I treat like I have deducted but not paid? So I can pay only interest on late deposit ..

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 31 March 2014

Ponam

As i remember that there is condition that the interest and penlaty shall not exceeds the amount of TDS so plz confrim before making payment....

POONAM (article assistent) (71 Points)
Replied 31 March 2014

No I think this provision is applicable only in case of late fee u/s 234 E ..and not in case of interest default ..

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 31 March 2014

yah...this is for late return.filling.

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Vijeta Nathani (Student ) (56 Points)
Replied 01 April 2014

Late deposit interest will not be applicable, dear. Only interest for not deducting will be calculated from date of payment/credit made to date of deposit.

Vijeta Nathani (Student ) (56 Points)
Replied 01 April 2014

U can be charged for late payment interest as you had not deducted.

Vijeta Nathani (Student ) (56 Points)
Replied 01 April 2014

U can not be charged for late payment interest as you had not deducted.

CA Radhika Pai (Chartered Accountant) (776 Points)
Replied 02 April 2014

That means if there is late deduction of TDS then late deposit interest will not be charged...Therefore , only 1% will be charged for late deduction & not 1.5% for late deposit.. Seniors kindly correct if I have drawn wrong conclusion... Thanks in advance...