The salary for our Institute for the month of March and April was paid in the month of May 17. The Income tax collected from the salary was deposited on 5th June. The income tax Department imposed interest for late payment under section 200A.
In the IInd case incometax is deducted short but the payment was deposited in time. The income tax Department imposed interest for late submission and demanded the amount which was less deducted under section 201A and 206.
Kindly inform what is section 200A and 206 and are they applicable in the above cases. Please also intimate how the interest is calculated.
Late Salary Payment Triggers Interest Charges Under Sections 200A, 201A, and 206; Clarification Sought on Applicability and Calculation. The discussion involves late payment of salary and subsequent income tax issues at an institute. Salaries for March and April were paid in May, and the collected income tax was deposited on June 5th, leading to interest charges under section 200A for late payment. Additionally, there was a short deduction of income tax, although timely deposited, resulting in interest charges under sections 201A and 206. The query seeks clarification on the applicability of these sections and the calculation of interest. The respondent believes these sections are applicable to the cases mentioned. (AI Summary)
TaxTMI 
TaxTMI 
