TDSMAN Blog

smart & easy software for eTDS & eTCS returns

Interest calculation for delayed payment of TDS

The interest is to be calculated as per illustrations below: 

Case 1:

Q1, Tax Deducted on 26th June, TDS deposited on 9th July (due date was 7th July)

The period of 26th June to 30th June will be calculated as one month (being part of a month) & from 1st July to 9th July will also be treated as one month. As such in this case, the interest payable is for two months. Total interest would be 3%. Sounds odd, but it is true -  for a delay of 2 days, one has to pay interest for two months. 

Case 2:

Q4, Tax Deducted on 20th March, TDS deposited on 5th May  (due date was 30th April)

The period of 20th March to 31st March will be calculated as one month, 1st April to 30th April will be another month & from 1st May to 5th May will be treated as another one month. As such in this case, the interest payable is for three months. Total interest would be 4.5%. For a 5 day delay, the interest payable is for 3 months. 

Logic behind this calculation is that, if dues are not paid on time, the interest for each month (or part thereof) is to be paid right from the date of deduction till date of deposit of the TDS. Each month is treated based on the ‘Calendar Month’ instead of counting the number of days.

facebooktwittergoogle_plusredditpinterestlinkedinmail

Healthy Practices for Error-Free TDS Returns

Healthy practices for error – free TDS returns has been given below:
  1. Deduction/ Collection of Tax at Correct Rates.
  2. Timely Deposit of Tax Deducted at Source.
  3. Accurate Reporting of data related to tax deductions/ collections made.
  4. Submission of TDS Statements within the due dates.
  5. Verification and Issuance of TDS Certificates within time.
  6. CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
  7. User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).
  8. Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.
  9. The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
  10. Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
  11. PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
  12. The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.
facebooktwittergoogle_plusredditpinterestlinkedinmail

TDS and TCS Rates Chart for F.Y. 2014-15

TDS Rates for F.Y. 2014-15

Nature of Payment

Made To Residents

Threshold(Rs.)

Company / Firm / Co-operative Society / Local Authority

Individual / HUF

If No / Invalid PAN

Section – Description

Rate (%)

Rate (%)

Rate (%)

192 – Salaries

-

NA

Average rates

30

193 – Interest on securities

-

10

10

20

194 – Dividends

-

10

10

20

194A – Interest other than interest on securities – Others

5000

10

10

20

194A – Banks

10000

10

10

20

194B – Winning from Lotteries

10000

30

30

30

194BB – Winnings from Horse Race

5000

30

30

30

194 C – Payment to Contractors  
- Payment to Contractor – Single Transaction

30000

2

1

20

- Payment to Contractor – Aggregate During the F.Y.

75000

2

1

20

- Contract – Transporter who has provided valid PAN

-

-

-

20

194D – Insurance Commission

20000

10

10

20

194DA-Pament of Taxable Life Insurance Policy wef 01.10.2014

100000

2

2

20

194E – Payment to Non-Resident Sportsmen or Sports Association  
- Applicable up to June 30, 2012

-

10

10

20

- Applicable from July 1, 2012

-

20

20

20

194EE – Payments out of deposits under NSS

2500

20

-

20

194F – Repurchase Units by MFs

1000

20

20

20

194G – Commission – Lottery

1000

10

10

20

194H – Commission / Brokerage

5000

10

10

20

194I – Rent – Land and Building

180000

10

10

20

194I – Rent – Plant / Machinery

180000

2

2

20

194J – Professional Fees

30000

10

10

20

194LA – Immovable Property

100000

10

10

20

194LB – Income by way of interest from infrastructure debt fund (non-resident)

-

5

5

20

194LBA Income paid Under section 115UA we f 01.10.2014  
Resident

-

10

10

20

Non resident

-

5

5

20

Sec 194 LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012)

-

5

5

20

195 – Other Sums

-

Average rates

-

30

196B – Income from units  

10

10

20

196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)

-

10

10

20

196D – Income of FIIs from securities

20

20

20

20

 

TCS Rates for F. Y. 2014-15

Section  Nature of Payment F. Y. 2014-15
Individual / HUF Other
206C Alcoholic Liquor for human consumption (A) 1 1
206C Timber obtained under a forest lease  (B) or other mode (C) 2.5 2.5
206C Any other forest produce not being a timber or tendu leave (D) 2.5 2.5
206C Scrap (E) 1 1
206C Parking Lot (F), toll plaza (G), mining and quarrying (H) 2 2
206C Tendu Leaves (I) 5 5
206C Minerals, being coal or lignite or iron ore (applicable from July 1, 2012) (J) 1 1
206C Bullion if consideration (excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash) (applicable from July 1, 2012) (K) 1 1

 

 

facebooktwittergoogle_plusredditpinterestlinkedinmail

Reasons for rejection of correction statement by TDSCPC

Following are the common reasons for rejecting a correction statement:

  • TAN is not valid as per data at TDSCPC
  • Statement corresponding to regular token number / previous token number field, as given in correction return, does not exist
  • Previous token number does not correspond to the last accepted correction statement at TDSCPC
  • Correction is filed for a regular return which is in cancelled state
  • In a correction statement, below are the verification keys which should match with the corresponding fields of regular statement :
    • RRR assessment year
    • Return Financial Year
    • Periodicity
    • Previous Token number
    • Last TAN of Deductor
    • Receipt number of Original / Regular Return
    • Form number
  • Sum given in 27A form should match with the sum of deducted amount of deductee records given in the correction statement

 

facebooktwittergoogle_plusredditpinterestlinkedinmail
  • RSS
  • Facebook