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FAQ on Late TDS payment

What is the Late payment interest?

When deductor deposits the TDS after due date of deposit, it is a case of late payment and interest will be charged accordingly.

What is the Interest Rate for Late Payment?

What is the procedure of calculating interest on Late Payment?

Late Payment interest is calculated @ 1.5% per month or Part of the month from the date of deduction +1 day till date of Deposit.

Procedure of calculating Late Payment:

Calculation

No. of months in Defaults = 3 i.e., 4-Mar-12+1 day to 12-May-12

4000*1.5%*3(Months) =180.00

What should I do in case of Late Payment Intimation Received?

Follow the steps mentioned below:

What are the facts that should be considered for calculating Late payment interest raised by TDSCPC? 

Interest is calculated as per sec. 201 (1A) (ii) of IT act 1961, considering the below mentioned facts:

What is the due date for the Quarterly deposit of TDS in special case under rule 30(3)?

Quarterly date of deposited of TDS:-Q1 (Apr to Jun) – 7 July, Q2 (Jul to Sep)- 7 OCT, Q3 (Oct to Dec)- 7 Jan, Q4 (Jan to Mar)- 30th April.

If Extension is given, and then the Due date of Deposited will be considered from?

Late Payment interest will be calculated from the date of deduction but eligibility for extension will be considered from the date of payment/credit.

What is the additional Late Payment Interest?

Additional late payment will arise, while in correction statement, deductor has added new deductee rows and has given credit to deductee against newly paid challan or modified Date of Deduction or have made changes in any unmatched challan against which the TDS payment made.

Source: TRACES

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