We know that Due date for TDS is 7th of next month

However for March,TDS Due date is 30 April

If deposited late,we have to pay interest @ 1.5%


TDS Challan Due dates.jpg

 

If  TDS is deposited late

Interest is payable from

Date of Deduction (and not Last Date of Challan)

to

Actual Date of Deposit

@ 1.5%

Interest Calculation Under TDS.jpg

 

Example 1

Bill of 20 October received of 50000 of Maintenance Charges

Payment made on 24 Oct of 49000(50000-2% tds)

What is Date of Deduction?

View Answer

What is date of Deposit?

View Answer

Suppose TDS Actually deposited on 8 November

What is Interest to be paid?

View Answer

 

 

Note

If TDS of March late deposited,then 3 Months Interest Payable

1.5%*3=4.5%

Example 2

Bill of 29 March received of 50000 of Maintenance Charges

Payment made on 30 March of 49000(50000-2% Tds)

What is Date of Deduction?

View Answer

What is date of Deposit?

View Answer

Suppose TDS Actually deposited on 1 May

What is Interest to be paid?

View Answer
  1. Tax Practical
  2. Practical TDS (Non Salary)

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .