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Tds late payment interest calculation and correct statement

Kumar-Sujeet (Sr. Accounts Officer) (282 Points)

05 April 2014

PAN	DATE OF DEDUCTION	DATE OF PAYMENT	DEFULT DAYS	DEFULT MONTH
A	4-Mar-14	3-May-14	60	2
B	4-Mar-14	4-May-14	61	3
C	4-Mar-14	7-May-14	64	3

IS IT CORRECT OR NOT PLZ GIVE ME SOME IDEA ...????

also in case of short payment month calculation is it the procedure...

Thanx in adv.

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10 Replies

Nikhil Gupta (Student) (49 Points)
Replied 05 April 2014

For TDS interest purposes, number of days is irrelevant as part of a month is considered as a whole month. Your above calculation is correct and I am sure even in case of short payment, the same calculation would apply.

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PARV (TAX ASSISTANT.) (202 Points)
Replied 05 April 2014

FOR PAN A:---IT SHOULD BE 3 MONTHS

AS MARCH IS 1ST MONTH, APRIL 2ND MONTH & MAY 3RD

Govardhana Reddy N (Chartered Accountant) (97 Points)
Replied 05 April 2014

For deductions made during the month of March, payment must be made on or before 30th April.

In the case of PAN A also we have to pay interest for 3 months. Number of days is irrelevant.

Nikhil Gupta (Student) (49 Points)
Replied 05 April 2014

For PAN A it will be two months. The act states "Interest will be calculated from the date of deduction and any part of month thereof shall be considered as whole for calculation purposes" Number of months will be calculated from the date of deduction I.e 4th and not from 1st of the month.

CA Kumar Ajay (Following My Dreams) (228 Points)
Replied 05 April 2014

3 Months Default In All Cases

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CA Vineet Dubey (Accounts) (160 Points)
Replied 06 April 2014

last date of payment wasApril 30 .so default for 2 month and you have to pay interest for 2 month. But i am syore if intimation from cpc recd in future they will charge interest for 3 month due .