Under Section 201(1A), in case off late deposit of TDS after deduction, you have to pay interest. Interest is calculated at the rate of 1.5% per month from the date on which TDS was deducted to the actual date of deposit.
What is interest u/s 220 2?
As per section 220(2), if the taxpayer fails to pay the amount specified in any notice of demand issued under section 156(1) (as discussed) within the period as allowed in this regard, then he shall be liable to pay simple interest at 1% for every month or part of a month .
How is interest on late payment of TDS calculated?
Interest on Late Deduction = 12300 * 2 months * 1/100 = 246 . Under Section 201(1A), you will have to pay interest of 1.5% per month or part of the month, from the Date of Deduction(of TDS) to the Date of Payment. This interest applies to “Non-payment of tax after deduction, either in whole or in part”.
What is the interest rate if the TDS is not deducted on a transaction?
| Default under section Nature of Default Interest on such default | 201A Non-deduction of TDS, either in whole or part 1% per month | 201A Non-payment of TDS (after deduction) 1.5% per month |
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Is TDS due date for March 2021 extended?
| January 10 Due date of filing ITR for FY 2019-20 for taxpayers whose accounts are not be audited | May 31 Quarterly filing of TDS return for TDS deposits made for quarter ending March 31, 2021 (The government has extended the deadline to June 30, 2021 .) |
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How can I pay TDS late?
Select the payment type. In case of a normal payment, click on the (200) TDS/TCS Payable by Taxpayer, or if it is a payment against the request raised by the income tax department (e.g., Payment of interest or late fees as per the section 234E), then you must click on the (400) TDS/TCS Regular Assessment (Raised by ...
How do I calculate interest?
You can calculate simple interest in a savings account by multiplying the account balance by the interest rate by the time period the money is in the account. Here’s the simple interest formula: Interest = P x R x N. P = Principal amount (the beginning balance) .
What is TDS interest rate?
Under Section 201(1A), in case off late deposit of TDS after deduction, you have to pay interest. Interest is calculated at the rate of 1.5% per month from the date on which TDS was deducted to the actual date of deposit.
What is new TDS rate?
| TDS Rate (%) TDS Rates from 01.04.2020 to 13.05.2020 TDS Rates from 14.05.2020 to 31.03.2021 | 30 30 30 | 30 30 30 | 1 2 1 2 0.75 1.5 | 5 (w.e.f 01.06.2016) ( 10% from 01.04.2015 to 31.05.2016 5 3.75 |
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How is TDS calculated?
Compute the available exemptions under Section 10 of the Income Tax Act (ITA) Subtract exemptions found in step (2) from the gross monthly income calculated in step (1) Multiply the number obtained from the above calculation by 12, as TDS is calculated on yearly income. This is your taxable income from salary.
What is the due date of TDS payment for March 2021?
CBDT has extended the due date for payment or deposit of TDS for March 2021 from April 30, 2021 to May 31, 2021 vide Notification dated only in certain cases. There is a myth that the due date for payment of TDS for the month of March 2021 has been extended from April 30, 2021 to May 31, 2021.
What is the due date for payment of TDS for April 2021?
| Quarter Quarter Period Due Date | 1st Quarter April – June 31 March 2021 | 2nd Quarter July – September 31 March 2021 | 3rd Quarter October – December 31 January 2021 | 4th Quarter January – March 31 May 2021 |
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Can TDS return be revised after due date?
As there is a provision u/s 139(5) for expiry period of filling income tax return and on another side there is no provision for expiry period of filling revise /corrected TDS return, creates the problem for deductee facing income escape assessment & concealment penalty.
Can TDS be paid late?
As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS .
Can TDS be paid on Sunday?
As we know, TDS is required to be paid by 7th of next month except for the month of March where the due date is April 30. ... Hence, accordingly, if the bank is closed (due to Sunday or holiday or strike) on the due date of payment, the same can be paid on the next working day.
What is the due date for payment of TDS?
Generally, the due date for TDS payment is always the 7th day of the next month , with a few exceptions. For example, if an organization wants to pay TDS for the month of July, then the TDS payment due date for the same will be the 7th of August.
