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TDS Not Deposited on Time

PREM CHAND ROHANDYA (Self Employed) (145 Points)

14 May 2011

HI,

I HAVE DEDUCTED TDS ON CONTRACTORS AT THE TIME OF PAYMENT IN SEPTEBER 2010, BUT TDS AMOUNT NOT DEPOSITED IN BANK. PLEASE GUIDE ME, CAN I DEPOSIT TDS AMOUNT AT TIME?

REGARDS

PREM

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13 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 May 2011

deposit now with interest and file return, positively within 15th may 2011

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ca.r.harirao (partner) (35 Points)
Replied 14 May 2011

YOU CAN DEPOSIT TAX WITH INTEREST U/SEC 201(IA) at any time before due date for filing return of income

Originally posted by : U S Sharma
	deposit now with interest and file return, positively within 15th may 2011

ca.r.harirao (partner) (35 Points)
Replied 14 May 2011

YOU CAN DEPOSIT TAX WITH INTEREST U/SEC 201(IA) at any time before due date for filing return of income

Originally posted by : U S Sharma
	deposit now with interest and file return, positively within 15th may 2011

suman (Auditor ) (388 Points)
Replied 14 May 2011

You can deposite tds together with intt. by latest 30.09.2011. but sooner you pay amount better it would be .

Avinash c (CA - Final) (83 Points)
Replied 14 May 2011

yes u can deposit but with interest @ 1.5% on the default amount, and one more thing TDS deducting alone is not important but you should also deposit it into the treasury of govt.

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XYZ..... (-) (516 Points)
Replied 15 May 2011

Deposit it with interest before 30.09.2011 ,otherwise the payment made will be disallowed by the authority.....

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 15 May 2011

Originally posted by : suman
	You can deposite tds together with intt. by latest 30.09.2011. but sooner you pay amount better it would be .

Dimple Kotak (Accounts & Tax ) (185 Points)
Replied 15 May 2011

Deposit it with interest before 30.09.2011 ,otherwise the payment made will be disallowed by the authority.....

(Guest)

Originally posted by : Avinash c
	yes u can deposit but with interest @ 1.5% on the default amount, and one more thing TDS deducting alone is not important but you should also deposit it into the treasury of govt.

Can you confirm the Rate of Interest......?

I guess it is 1% p.m. and not 1.5%.

2 Like

Avinash c (CA - Final) (83 Points)
Replied 16 May 2011

Dear yogini,

The above said 1% interest has been increased to 1.5% w.e.f form July 2010, please read the following

Under the existing provisions of section 201(1A) of the Act, a person is liable to pay simple interest at one per cent for every month or part of month in case of failure to deduct tax or payment of tax after deduction.

With a view to discourage the practice of delaying the deposit of tax after deduction, it is proposed to increase the rate of interest for non-payment of tax after deduction from the present one per cent to one and one-half per cent for every month or part of month.

This amendment is proposed to take effect from 1st July, 2010.

For further clarification follow the link https://www.simpletaxindia.org/2010/04/late-deposit-tds-pay-interest-15-pm.html

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CA Vijay Kumar Walande (Expert) (515 Points)
Replied 17 May 2011

Rate of Interest is amended with effect from July 1 2010.

Under the amended version Interest rate will be payable as follows

1. It is 1% from the date on which tax was deductible to the date on which tax is actually deducted

2. It is 1.5% from the date on which tax was actually deducted to the date on which tax is actually paid.

Pankaj Agrawal (Advocate) (71 Points)
Replied 17 May 2011

Dear sir,

what will be the position if TDS deducted on 31.03.2011 could not be deposited to the a/c of Govt of India by 30.04.2011 consequently no TDS return was filed upto 15.05.2011