TDS Interest if Wrong Date of Deduction in TDS Return

We know that

TDS is to be deducted at Invoice Received

or

Payment Made, whichever is earlier

If we mention wrong date of deduction,then 1% interest is payable from

Last Date of Deduction to Actual Date of Deduction

Example 1

Suppose Invoice Received of 20 April of 50000 of Maintenance Charges

Payment made on 25 April after deducting 2%TDS

What is date of Deduction?

View Answer

Suppose TDS Actually deducted on payment on 25 April and deposited by 7 May

How much Interest is payable

View Answer

Sometimes both 1.5% and 1% TDS Applicable

Interest Calculation Under TDS 2.jpg


Example 2

Suppose Invoice Received of 20 April of 50000 of Maintenance Charges

Payment made on 1 May after deducting 2%TDS

What is date of Deduction?

View Answer

Suppose TDS Actually deducted on payment on 1 May and deposited by 7 June

How much Interest is payable

View Answer

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.