INTEREST ON TDS FOR DELAYED PAYMENT

[S.C. WADHWA]

A Pvt. Ltd. Co. (named XYZ) borrowed loan from another compnay. Interest is being paid on such loan on monthly basis.XYZ failed to deduct tds on interest for month of June, thus tds was not deposited for June.Now it is deducting tds on 31/07/14 for month of Juneand Julyand will deposit the same on 07/08/14.Please advise how much interest will be charged for latedeposit of tds of June month.

[CAGOPALJI AGRAWAL]

Interest @ 1.5% per month or the fraction of the month is chargeable.

AI Summary

XYZ Misses TDS Deduction on June Interest, Plans July 31 Deduction; Faces 1.5% Monthly Interest Penalty A private limited company, referred to as XYZ, borrowed a loan from another company and pays interest monthly. XYZ failed to deduct tax deducted at source (TDS) on the interest for June, delaying the deposit. The company plans to deduct TDS for both June and July on July 31 and deposit it by August 7. A respondent advised that interest on the delayed TDS deposit for June would be charged at 1.5% per month or part of a month.