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

However for March,TDS Due date is 30 April

(in case of Non Salary only)

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


Due Date and Form No of TDS Challan - Filling TDS Challan 281

 

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) TDS Rate 5%

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%

E x ample 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)
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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 .