TDs payment-reg

[Ramakrishnan Seshadri]

Dear Sir,

I had a doubt on payment for TDS. We have paid TDs on 7th evening around 8 PM. But the Challan date generated is 8th. But in epayment list the date of transaction is 7th. Now the department has sent a notice for late payment of 1 day interest.

Now our question is whether the notice sent by the department is correct or we shall fight with the department.

Kindly clarify.

Thanks & Regards,

S.Ramakrishnan

[Ganeshan Kalyani]

Sir the notice sent by the department is correct. The payment date in your bank account is not considered as payment date. The date of clearance of the payment I.e. the Chapman generated date is considered as date of payment of tax. However in my view if you had genuine reason to make the payment on 7th but very late, you should put a request to the department . May your request me accepted by department. Thanks.

AI Summary

TDS payment date treated as challan generation date; late interest may apply, taxpayer may request discretionary waiver.
TDS payment date is the challan or payment clearance date, not the bank transaction initiation date; interest for late payment is computed from the challan date. A departmental notice charging interest for the later clearing date is consistent with this rule, though taxpayers may request discretionary waiver if they can show genuine reasons for initiating payment earlier.