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WHAT TO DO?

s kumar (ca) (105 Points)

03 July 2009

If an assesse required to deduct and deposit TDS on interest on unsecured loans has not done so within the stipulated time, say 30th may, what is the remedy available?

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Yogesh Shah (Managing Corporate Finance) (1051 Points)
Replied 03 July 2009

Remedy will be simple...................

Deposit TDS deducted as soon as possible. But, an assessee will be liable to penalty for late deposit of Tax.

If the TDS amount is not deposited by the required date, then for each month you must add an interest equal to 1% of the TDS amount.

Even if the delay is by one day, you will pay one month's interest.

If the TDS return is not filed by the due date, there is a penalty of Rs. 100 per day subject to maximum limit equal to the TDS amount.

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CA Gnanika (CA ) (485 Points)
Replied 03 July 2009

pls find the attachment , this may help u for tds deduction & payment analysis

Attached File : 21 tds amendment.doc downloaded: 214 times

Sunali (Learner) (1317 Points)
Replied 03 July 2009

Originally posted by :s kumar
"	If an assesse required to deduct and deposit TDS on interest on unsecured loans has not done so within the stipulated time, say 30th may, what is the remedy available?	"

As per the Income Tax Act, TDS is required to be deducted and deposited within the stipulated time which is at the time of payment/credit, for deduction and for deposit, it is 7th of the following month. However, TDS for a given year can be deposited till the due date of return i.e. 30th September ( as per the amendment in Finance Act, 2008) with interest of 1% for each month passed.

If still, TDS is not deposited by the due date of return, the interest paid to depositors will not be allowed as an expense against the income of the given year. But the respective claim can be filed in any subsequent year by deposting the TDS in that year.

RAMANJU (here to updating the knowledge) (485 Points)
Replied 03 July 2009

I would like to add one more thing, The interest 12% P.a is calculated on the tax amount for period of delays. Now, as per recent amendment the interest is calculated for each days of default in depositing the tax.