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Sunday, August 29, 2010

Interest On Delayed payment

Hi all. This to all your atention that if there is any delay in payment of TDS . Interest will be 3%.
This 3% is calculated not from the day of due date till the day of payment but from the day of deduction till date of payment. per month is 1.5% and includes part of a month also.
Thus from the date of deduction till payment if it is exeeding a day you will have to give 2 months interest. That is 1.5% *2= 3%.

Deducting TDS is the responsibility of deductor and hense he is liable for interest.
Next time when you are deducting TDS make sure that you pay it before due date.

This for your information that TDS is to be deducted on payment or credit basis which ever is earlier and due date of depositing tds is 7th of every month. Except for 30th march it will be 31st May.


If you have any questions do let me know

1 comment:

  1. i don't think that for 31st march tds payment is 31st may, iit is the same month end i.e. 31st march itself.

    ReplyDelete