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TDS Interest

Chetan (ipcc ) (61 Points)

19 October 2017

if company forget to deduct tds (23/3/17) and after some time company deduct or recover TDs amount (14/9/2017) from party and pay tds to government on(2/10/2017)
than company need to interest
1.5 + 1%=2.5% per month?

what is calculation of this problem?

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7 Replies

(Guest)

18% pa

18/12 = 1.5 per month

1.5 +1 (for late payment) = 2.5

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Ashiwini Ballodia (Managing Partner at TAXounting) (8737 Points)
Replied 19 October 2017

You have to pay interest @ 1% for late deduction of TDS

Ashiwini Ballodia (Managing Partner at TAXounting) (8737 Points)
Replied 19 October 2017

1% per month

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 19 October 2017

Yes... I agreed with Mr Ashiwini Ballodia.,

You ll be pay 1% for late deduction

*From the date when TDS was deductible till date of actual deduction,rate of interest is 1% p.m.

*For delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.5% p.m

ROHIT NAWANI (student) (31 Points)
Replied 20 October 2017

1 % pm * 7 months (i.e March to Sept )

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Ashiwini Ballodia (Managing Partner at TAXounting) (8737 Points)
Replied 20 October 2017

Yes now you are correct

j naga bhargav bommidala (ca) (63 Points)
Replied 21 October 2017

Interest on late deduction for period of due date for deduction and actual deduction. and for interest on late payment is due date for payment of deducted amount to actual payment. so in any case only one kind of interest applies.