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Tds not deducted

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

02 January 2012

HELLO FRIENDS, MY CLIENT HAS NOT DEDUCTED THE TDS ON SALARY FROM APR-SEP

CAN HE DEDUCT THE WHOLE TDS NOW AND DEPOSIT IT.

ANY INTEREST OR PENALTY IS LEVIED OR NOT

PLS. HELP ME.

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11 Replies

Palash Gupta (Student...Hoping to pass Inter) (892 Points)
Replied 02 January 2012

Hi Raj

The TDS can be deducted and deposited now with ana interest liability of 1% from date of deduction upto the date of actual deduction of such TDS.....

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Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 02 January 2012

I feel there is no need to pay any interest. The TDS on salaries usually tend to increase in the later part of the FY as the proposed investments in declaration submitted by employee might not be able to fulfill the targets.

Moreover the employer has to compute the estimated total income..., certain assumptions can rightly crop up for whcih the employer did not find it suitable to deduct tax in apr to sept.

Shivank Khanna (B.Com CA Final) (162 Points)
Replied 02 January 2012

HI RAJ KUMAR,

IF TDS HAS NOT BEEN DEDUCTED IN THE EARLIER MONTHS, THE SAME CAN BE DONE NOW. FOR EXAMPLE TOTAL TDS TO BE DEDUCTED WAS RS 40000, THEN MONTHLY TDS INSTALMENT COMES OUT TO BE (40000/12 MONTHS) RS 3333 , BUT IF TDS HAS NOT BEEN DEDUCTED IN THE FIRST SIX MONTHS , THEN IT CAN BE ADJUSTED IN REMAINING MONTHS- (40000/6MONTHS) RS 6667....

However interest will be charged likewise-

a.) from the date the tax was deductible to the date on which such tax is deducted- 1% per month or part of the month

b.) from the date on which such tax is deducted to the date on which such tax is actually paid- 1.5% per month or part of the mont

Note- Such interest is to paid before furnishing the quarterly statement for each quarter.

Penalty is generally not charged .. so dont worry at all about it.

1 Like

prasad (Manager) (22 Points)
Replied 03 January 2012

hi i agreed Dipjyoti M suggestion. Practically employee may not be submit all the investments hence company will deduct balance tax in last months

LALIT KUMAR GANERIWAL (accountant) (241 Points)
Replied 03 January 2012

YES I AGREE WITH DIPJYOTI

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Gulshan Kumar (Professional Accountant) (119 Points)
Replied 04 January 2012

YES I AGREE WITH DIPJYOTI

CA MAULIK (C.A) (937 Points)
Replied 04 January 2012

In addition to interest for non deduction ,interest for late deposit also comes in to picture..however if employer is at fault for late deposit then he is liable for the interest and not an employee

CA Neil Ganatra (Partner - Gautam Joshi & Co.) (871 Points)
Replied 04 January 2012

TDS can now be made in on salary. There is no need to pay any kind of interest.

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 04 January 2012

TDS can be deducted and deposited now.

1. If you does not have any basis of non-deduction of TDS from Apr to Sep-11, then you will have to pay interest @ 1% from the date you are supposed to make deduction to the date on which you have actually deducted.

2. In case employees have investment and you can take declaration from them in past date e.g. 1st Apr-11, then you can deduct less TDS and hence less interest you will have to pay.