Through this blog, we will discuss the penalties and interest on late payment of TDS. Filing of TDS statement with payment of interest Every deductor has to furnish quarterly statement in respect of tax deducted by him i.e., TDS return. Copyright © TaxGuru. TDS is to be paid by 7th of the following month. THE FOLLOWING POINTS ARE NOT CLEAR Important: there is a difference between late deduction and late payment. If assessee fail to pay TDS need to pay interest @1.5% per month or 18% per Annam. Thus , it is clear that whilst date of TDS filing which is 31st May ( falls between 20 March 2020 – 29 June 2020 )is extended to 30th June 2020 , delay in deposit of TDS will be subject to interest @ .75% for every month of delay . It should actually be “…has not been paid before the due date but paid on or before 30th ” because the current meaning gives contradictory view to the gazette notification, why interest at 9% after 30.4.20 when lockdown will end on 3.5.20. TCS payments for the month of Mar-2020 needs to be made within 30th April, 2020. For example: TDS(Rs. The government has extended the lockdown upto 31st may 2020. The return is not filed till 31st May, 2021 and hence late filing fees under section 234E of Rs. THE TDS FOR MARCH CANNOT BE WORKED OUT SINCE BILLS OF SERVICES BE PENDING FOR MARCH 2020, Right. Sometimes the deductor at the time of making TDS payment make some errors like selection of wrong payment section, wrong major head or Minor head or made payment for the … TDS on salary is to be deducted under section 192 and the payment of the same is to be made by 30th April, 2020. Due to ongoing COVID-19 pandemic and the imposition of nationwide lockdown, many taxpayers were compelled to delay the deposit Are You Looking At A Career As A Finance Adviser? 5000) was deducted on 24th July and the due date for TDS Payment was 12th August. January 2021 to March 2021 is 31st May, 2021. no benefit of reduced interest Illustration: Calculation of interest and late fees for delayed filing of return for the month of April 2020 (due date of filing being 11.05.2020) may be illustrated Delayed payment of self-assessment tax made between 20 March 2020 to 30 June 2020 would attract reduced interest rate of 9% per annum (p.a.) TDS late payment interest rate and amount. The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. 2013-14, No TDS on Service Tax u/s 194J of the Income Tax Act, Introduction of Section 87A -Income Tax Rebate. It is suggested that the payment date to be after lockdown and the filing of return to be after a month or two. Employees TDS and Form 16?. Interest on late payment of TDS: Changes made as per Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24 th March 2020: 02 june 2020 as per recent budget due to covid 19, if tds deposited in may 2020 for 31 march 2020 deduction of tds, how many month late for interest on tds c.bakshi Follow No late fee/penalty shall be charged for delay … This video indicates Interest on Late Payment of TDS, how to calculate interest on late payment of tds and tds journal entries The assessee fails to deposit the TDS by 12th August. Explanation – For the purpose of this sub section the period of delay means the period between the due date and the date on which the amount has been paid. for 2 Months for April-20. Further, even though provisions are available for the defaulter to avoid payment of TDS amount by producing evidences that the deductee has paid taxes as per First proviso to Section 201, it does not provide immunity from … TDS payment due date every quarter. Note 1: Consider tax treaties before determining the rate of withholding tax under Section 195. Interest is chargeable on short payment/late payment of TDS. Interest on late payment of TDS: Changes made as per Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24 th March 2020: Month of Deduction: Quarter ending: Due date for TDS Payment through Challan: Due Date for TDS Return Filing from the FY 2020-21 for all Deductors *For Govt. TDS Late Payment Interest Calculation - TDS Interest and Penalty … If Tds amount deposited on 31st may 2020…then…interst.. amount.. payable..for.delay..1..month…or…2…month…? Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. All Rights Reserved. ; 5. Finance minister Nirmala Sitharaman had also cut interest rate to 9% from 18% on delayed deposit How to Download TDS Certificate in Form 16B? – Finance Risk Manager (FRM) Is The Course For You! 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. The due date for payment in case of TDS on sale of immovable property under section 194IA is 30 days from the end of the month including the month of March. 26 May 2020 For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, the reduced interest rate at 9% instead of 12 %/18 % per annum ( i.e. PLEASE LET US NOW HOW A PERSON CAN BE HELD RESPONSIBLE UNDER FORCE MEASURE (CONDITION BEYOND ONCE CONTROL). Advisory: Information relates to the law prevailing in the year of publication/ as indicated .Viewers are advised to ascertain the correct position/prevailing law before relying … How will transactions of more than one buyer/seller be filed in Form 26QB - TDS on immovable property. When TDS is deducted but payment is made lately Also, for late payment Interest at the rate of 1.5 % per month or part of the month on amount of TDS from the date of tax was deducted till the date such tax is paid shall be charged from the deductor. TDSMAN March 11, 2020 July 6, 2020 No Comments on Interest on Late Payment of TDS. Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. Furnish GSTR-1 in time, or pay late fees, Due dates for filing of Form GSTR-3B for December, 2020, Webinar on Career Growth in GST related Litigation Management, Goods and Service Tax (GST) Registration & Requirements, Uttarakhand HC directs CBDT to consider representation on due date extension. But TDS is cut from my salary For month of March the last date of deposit is 30th April. One stands to lose more if there is interest demand rather than TDS Demand and whenever TDS Demands exist it is safer to settle it with interest!. Interest penalties for late payment of TDS and late filing of TDS … If it is deposited later than the due date, late payment interest is charged. What is the interest rate for late payment of TDS for the month for March 2020 if paid in July 2020 - Income Tax TDS Note 2: Monetary limit for TDS applicability should be considered while determining TDS liability. Full late fees and Interest rate @18% p.a. Interest on late payment of TDS: Changes made as per Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24 th March 2020: Things to do on your India visit: checklist for NRIs. Income Tax Act 1961 also covers under the Specified Act as per Para 2 of the ordinance.