If assessee fail to pay TDS need to pay interest @1.5% per month or 18% per Annam. Through this blog, we will discuss the penalties and 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. Income Tax Act 1961 also covers under the Specified Act as per Para 2 of the ordinance. 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 … for 2 Months for April-20. The rate of interest for late payment is 1.5% per month or part of … How can we pay the tds/tds and also interest in charge for the period as all the records are available in the office. THE FOLLOWING POINTS ARE NOT CLEAR Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East), TDS (Income Tax) Deposit for March 2020 & Filing of Return (Q4), Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, New Process to Submit Response for Income Tax Refund, Tax Exemption For LTA Under Special Cash Voucher LTC Scheme, ITR Processing & Communication | AY 2020-21| Section 143(1) Intimation, Cancellation of GST Registration – Amendments at A Glance, An Overview of Special Cash Package LTC Scheme, Section 37 General Deductions allowed for Business & Profession, Section 35AD Deduction towards expenditure on specified business, Section 35ABB – Deduction towards expenditure incurred for obtaining a licence for operating telecommunication services, ‘Address of delivery’ & ‘Address on record’ under GST, Bombay HC stayed provisional attachment of bank accounts noting assessee’s cooperation, Gujarat HC grants regular bail to assessee arrested for offences punishable under Section 132(1)(a) of CGST Act, Join Detailed Online Certification Courses on GST. Note 1: Consider tax treaties before determining the rate of withholding tax under Section 195. 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 In my view, the employer needs to deposit TDS by 30th April 2020. Are You Looking At A Career As A Finance Adviser? TDS Late Payment Interest Calculation - TDS Interest and Penalty … 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!. Are you facing any problems to related with law? Note 2: Monetary limit for TDS applicability should be considered while determining TDS liability. 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 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. 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. 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. They must extend payment date also, Your email address will not be published. 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.) 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. In order to submit a comment to this post, please write this code along with your comment: 888123008b09a0eecde205538b41d650. 5000) was deducted on 24th July and the due date for TDS Payment was 12th August. TDS is to be paid by 7th of the following month. 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. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. you need not to worry about TDS reflection in form 26 AS. 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. Late payment of TDS will attract the interest @0.75% per month or … 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. 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. 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. THE TDS FOR MARCH CANNOT BE WORKED OUT SINCE BILLS OF SERVICES BE PENDING FOR MARCH 2020, Right. 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. TDS (Income Tax) Deposit for March 2020 & Filing of Return (Q4) by Team Free Tax Advice January 26, 2020 March 4, 2020. Important: there is a difference between late deduction and late payment. – Finance Risk Manager (FRM) Is The Course For You! 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. Finance minister Nirmala Sitharaman had also cut interest rate to 9% from 18% on delayed deposit 2013-14, No TDS on Service Tax u/s 194J of the Income Tax Act, Introduction of Section 87A -Income Tax Rebate. The Government has not stated any separate process for TCS. The government has extended the lockdown upto 31st may 2020. All Rights Reserved. The due date of filing the TDS return for the last quarter of the year 2020-21 i.e. January 2021 to March 2021 is 31st May, 2021. No late fee/penalty shall be charged for delay … 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. According the provision of Income Tax Act, 1961 every person who deducted TDS need to deposited on of before 7th of the next month. 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. Where should I lodge a complain about this TDS late payment interest rate and amount. The interest for the delay in deduction is charged at the rate of 1% per month or part of a month of the delay. Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. If it is deposited later than the due date, late payment interest is charged. Have I submitted From15H through on line? For month of March the last date of deposit is 30th April. The return is not filed till 31st May, 2021 and hence late filing fees under section 234E of Rs. will we have to pay TDS with late Interest @ 9% for Three Months Interest for March-20 & Int. for 71 days (i.e. 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. 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: 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 . 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. Things to do on your India visit: checklist for NRIs. Copyright © TaxGuru. Interest penalties for late payment of TDS and late filing of TDS … How interest on late payment of TDS calculated ? TCS payments for the month of Mar-2020 needs to be made within 30th April, 2020. Since lockdown is going on upto 31.05.2020 how can tds will be paid on the stipulated time. 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. PLEASE LET US NOW HOW A PERSON CAN BE HELD RESPONSIBLE UNDER FORCE MEASURE (CONDITION BEYOND ONCE CONTROL). 2014-15 or F.Y. Join our newsletter to stay updated on Taxation and Corporate Law. The Author can be approached at caanitabhadra@gmail.com. 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. 1.U/S 192 THE TDS ON SALARY IS DEDUCTIBLE BUT THE EMPLOYEE CAN DEPOSIT / MAKE INVESTMENTS BY 30.06.2020. 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. Complain to the concerned Commissioner of Income Tax (TDS) with details by Registered Post with Acknowledgement Due. How will transactions of more than one buyer/seller be filed in Form 26QB - TDS on immovable property. HOW THE SAME CAN BE WORKOUT IN APRIL AND DEPOSITED BEFORE 30.04.2020 DUE FOR THE MONTH OF MARCH 2020. Ans. instead of 12% p.a TDS payment due date every quarter. 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: But TDS is cut from my salary 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 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. (June & July) aggregating to 2% interest. In this video we will discuss about the interest on delayed payment of tds before 30.04.2020. This is the TDS interest calculator which will help you in calculating interest on late deduction, late payment and late filing. 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 … 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: If I submitted through on line how can I proceed to my Allahabad bank. 2.UNDER COVID 19 THERE IS COMPLETE LOCK DOWN AND DATA IS NOT AVAILABLE TILL 04.05.2020. The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. This video indicates Interest on Late Payment of TDS, how to calculate interest on late payment of tds and tds journal entries What is the interest rate for late payment of TDS for the month for March 2020 if paid in July 2020 - Income Tax TDS TDS on salary is to be deducted under section 192 and the payment of the same is to be made by 30th April, 2020. 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. Full late fees and Interest rate @18% p.a. Basic provisions relating to due date of payment of TCS to the credit of Government 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. Therefore, they are similar to TDS provisions during COVID-19. 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” . I have got my salary slips for every month. Interest is chargeable on short payment/late payment of TDS. It is suggested that the payment date to be after lockdown and the filing of return to be after a month or two. I am tired of telling employer to deposit tds with IT department but they not doing so For example: TDS(Rs. Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. 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 … What should I do Interest calculation on delayed TDS/TCS payment amid Covid-19 - … TDSMAN March 11, 2020 July 6, 2020 No Comments on Interest on Late Payment of TDS. Same is not reflecting in 26 VAS Due to ongoing COVID-19 pandemic and the imposition of nationwide lockdown, many taxpayers were compelled to delay the deposit 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). 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. please check after 30th June-2020 as once the return submitted by the company it will reflact in 26AS. How to Download TDS Certificate in Form 16B? The assessee fails to deposit the TDS by 12th August. ; 5. When TDS is deducted but payment is made lately 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. Calculate Now! 200 per day of default will be levied. All India Protest Call against GST/Income Tax Issues by WMTPA, Taxpayers! However , there will not be any penalty and  prosecution in respect of such amount for the period of delay . If Tds amount deposited on 31st may 2020…then…interst.. amount.. payable..for.delay..1..month…or…2…month…? 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