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. Important: there is a difference between late deduction and late payment. Join our newsletter to stay updated on Taxation and Corporate Law. Late filing of TDS return will attract late fees under section 234E @Rs 200 per day for the period during which the default continues and maximum to TDS amount. If assessee fail to pay TDS need to pay interest @1.5% per month or 18% per Annam. No late fee/penalty shall be charged for delay … PLEASE LET US NOW HOW A PERSON CAN BE HELD RESPONSIBLE UNDER FORCE MEASURE (CONDITION BEYOND ONCE CONTROL). Things to do on your India visit: checklist for NRIs. Through this blog, we will discuss the penalties and interest on late payment of TDS. The interest for the delay in deduction is charged at the rate of 1% per month or part of a month of the delay. 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: (June & July) aggregating to 2% interest. 200 per day of default will be levied. Basic provisions relating to due date of payment of TCS to the credit of Government TDS late payment interest rate and amount. I have got my salary slips for every month. There can be the following scenarios:-When TDS is not deducted Interest at the rate of 1% per month or part thereof, for the period from the date on which TDS is deductible to the date on which TDS is actually deducted. Full late fees and Interest rate @18% p.a. For Example if the due date for a deduction is 2nd of June and it is deducted on 8th of July in the same year, then the interest is charged at the rate of 1% for each month i.e. 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. TDS on salary is to be deducted under section 192 and the payment of the same is to be made by 30th April, 2020. TDSMAN December 2, 2020 December 2, 2020 No Comments on Interest on Late Deduction of TDS The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. The Author can be approached at caanitabhadra@gmail.com. January 2021 to March 2021 is 31st May, 2021. for 71 days (i.e. Therefore, they are similar to TDS provisions during COVID-19. In order to submit a comment to this post, please write this code along with your comment: 888123008b09a0eecde205538b41d650. This video indicates Interest on Late Payment of TDS, how to calculate interest on late payment of tds and tds journal entries 2013-14, No TDS on Service Tax u/s 194J of the Income Tax Act, Introduction of Section 87A -Income Tax Rebate. 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. The rate of interest for late payment is 1.5% per month or part of … Income Tax Act 1961 also covers under the Specified Act as per Para 2 of the ordinance. 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 … Note 1: Consider tax treaties before determining the rate of withholding tax under Section 195. Late payment of TDS will attract the interest @0.75% per month or … The assessee fails to deposit the TDS by 12th August. 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 Register / Track PAN Card Related Complain / Status, Fees and Penalty for Late Filing of TDS Returns, Steps for filing Rectification request on receipt of demand notice due to mis-match of Income Tax, TDS/TCS Rates Chart for A.Y. 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. But TDS is cut from my salary 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 … 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 . 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. TDS (Income Tax) Deposit for March 2020 & Filing of Return (Q4) Extension of TDS Return (Q4 ) Filing date, As per Para 3(1)(b) the Ordinance ,where any limit has been specified in specified Act which falls during the period from 20th day of March 2020 to 29th day of June 2020 , for the compliance of –furnishing of any return under the provision of specified Act ,Then the time limit for completion shall stand extended to the 30th of June 2020, Interest for late deposit of Tax deducted for the month of March 2020 : As per Para 3(2) of the said Ordinance :-, Where any due date has been specified under the specified Act for payment of any amount towards tax which falls during the period from 20th day of March 2020 to 29th day of June 2020 and such amount has not been paid on or before 30th June 2020, then notwithstanding anything contained in this Act, Interest shall be levied in respect of such amount for the period of delay not exceeding  three-four percentage (.75%) for every month or part thereof. TDSMAN March 11, 2020 July 6, 2020 No Comments on Interest on Late Payment of TDS. As per section 201(1A), interest for delay in payment of TDS should be paid before filing the TDS return. Complain to the concerned Commissioner of Income Tax (TDS) with details by Registered Post with Acknowledgement Due. According the provision of Income Tax Act, 1961 every person who deducted TDS need to deposited on of before 7th of the next month. In this video we will discuss about the interest on delayed payment of tds before 30.04.2020. 2.UNDER COVID 19 THERE IS COMPLETE LOCK DOWN AND DATA IS NOT AVAILABLE TILL 04.05.2020. Learn more, Difference between Late Payment & Late Deduction, Save your time and get all new posts and updates delivered to you in your Mailbox, Levy u/s 234E of the Income Tax Act, 1961 is a statutory levy and cannot be waived. How will transactions of more than one buyer/seller be filed in Form 26QB - TDS on immovable property. If Tds amount deposited on 31st may 2020…then…interst.. amount.. payable..for.delay..1..month…or…2…month…? TDS Late Payment Interest Calculation - TDS Interest and Penalty … 2014-15 or F.Y. Are you facing any problems to related with law? Since lockdown is going on upto 31.05.2020 how can tds will be paid on the stipulated time. If I submitted through on line how can I proceed to my Allahabad bank. What should I do The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. Employees TDS and Form 16?. 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!. TDSMAN March 12, 2020 March 12, 2020 No Comments on Interest on Late Deduction of TDS The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. How interest on late payment of TDS calculated ? Same is not reflecting in 26 VAS 5000) was deducted on 24th July and the due date for TDS Payment was 12th August. Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. It is better to extend the payment date after lockdown date and the return filing date to subsequent date after one month from the date of payment of tds. Finance minister Nirmala Sitharaman had also cut interest rate to 9% from 18% on delayed deposit The return is not filed till 31st May, 2021 and hence late filing fees under section 234E of Rs. THE FOLLOWING POINTS ARE NOT CLEAR All Rights Reserved. In my view, the employer needs to deposit TDS by 30th April 2020. – Finance Risk Manager (FRM) Is The Course For You! Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. 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. 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. The Government has not stated any separate process for TCS. They must extend payment date also, Your email address will not be published. However , there will not be any penalty and  prosecution in respect of such amount for the period of delay . Late payment will attract reduced interest @ 0.75% per month or part of the month .Further, due date for filing of TCS returns in Form 27EQ for Q4-2020 has been extended to 30th June, 2020 from 15thMay, 2020. Sir our company is closed due to lockdown & in HOTSPOT area and no data for TDs also not possible to reach at office in any way what can we do without data we can not deposit TDs payment on or before due date of 30.04.2020 also some service invoices are not received. instead of 12% p.a Where should I lodge a complain about this ; 5. 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. When TDS is deducted but payment is made lately TDS is to be paid by 7th of the following month. Important: Interest @ 1.5% is liable to be paid from the date on which the TDS amount was deducted and not from the date the TDS payment was due. Interest penalties for late payment of TDS and late filing of TDS … I am tired of telling employer to deposit tds with IT department but they not doing so The government has extended the lockdown upto 31st may 2020. HOW THE SAME CAN BE WORKOUT IN APRIL AND DEPOSITED BEFORE 30.04.2020 DUE FOR THE MONTH OF MARCH 2020. Due to ongoing COVID-19 pandemic and the imposition of nationwide lockdown, many taxpayers were compelled to delay the deposit It is suggested that the payment date to be after lockdown and the filing of return to be after a month or two. 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The difference between late payment and late deduction: Late payment: After the tax is deducted at source it has to be deposited into the government account by 7 th of the next month (except March for which it is 30 th April). 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. If it is deposited later than the due date, late payment interest is charged. 1.U/S 192 THE TDS ON SALARY IS DEDUCTIBLE BUT THE EMPLOYEE CAN DEPOSIT / MAKE INVESTMENTS BY 30.06.2020. 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. This is the TDS interest calculator which will help you in calculating interest on late deduction, late payment and late filing. Interest calculation on delayed TDS/TCS payment amid Covid-19 - … Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. Sir our company is closed due to lockdown and no data for TDs payment and govt no announced any notification regarding extended the due date also not possible to reach at office in any way what can we do without data we can not deposit TDs payment please reply with your experts advice, I believe there’s a small unintended error in the para “… such amount has not been paid on or before 30th June 2020, then notwithstanding anything contained in this Act” . 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: TDS payment due date every quarter. Have I submitted From15H through on line? Are You Looking At A Career As A Finance Adviser? you need not to worry about TDS reflection in form 26 AS. The due date of filing the TDS return for the last quarter of the year 2020-21 i.e. For example: TDS(Rs. 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: Ans. The employee will invest by 30th June and claim the refund while filing his I T Return, My employer not deposited the tax with income tax department 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 … How to Download TDS Certificate in Form 16B? by Team Free Tax Advice January 26, 2020 March 4, 2020. How can we pay the tds/tds and also interest in charge for the period as all the records are available in the office. will we have to pay TDS with late Interest @ 9% for Three Months Interest for March-20 & Int. For month of March the last date of deposit is 30th April. TDSMAN August 4, 2020 August 4, 2020 2 Comments on Interest on Late Payment of TDS In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government. please check after 30th June-2020 as once the return submitted by the company it will reflact in 26AS. All India Protest Call against GST/Income Tax Issues by WMTPA, Taxpayers! 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.) 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. Note 2: Monetary limit for TDS applicability should be considered while determining TDS liability. Calculate Now! Government of India vide Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31.03.2020. notified relief measures  related to Income Tax return filings, GST compliance, PAN-Aadhar linkage and other statutory and regulatory issues. 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 Copyright © TaxGuru. TCS payments for the month of Mar-2020 needs to be made within 30th April, 2020. for 2 Months for April-20. What is the interest rate for late payment of TDS for the month for March 2020 if paid in July 2020 - Income Tax TDS THE TDS FOR MARCH CANNOT BE WORKED OUT SINCE BILLS OF SERVICES BE PENDING FOR MARCH 2020, Right. Interest is chargeable on short payment/late payment of TDS. Prosecution in respect of such amount for the period of delay the return by. 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