https://www.taxtmi.com/caselaws?id=397722 For Government dues paid by cheque, a duly honoured cheque tendered to the authorised bank within time is treated as payment on the date of tender, not the later clearance date. On that principle, interest under section 201(1A) on TDS cannot be levied merely because banking or clearing delayed credit to the Government account. The consequential demand under section 220(2) depends on the correct computation of the primary interest levy and must be recomputed accordingly. The discussion applies CBDT Circular No. 261, banking and treasury payment rules, and prior judicial authorities to the computation of cheque-based tax payments. en-us Fri, 21 Aug 2020 00:00:00 +0530 Thu, 27 Aug 2020 11:25:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=397722 For Government dues paid by cheque, a duly honoured cheque tendered to the authorised bank within time is treated as payment on the date of tender, not the later clearance date. On that principle, interest under section 201(1A) on TDS cannot be levied merely because banking or clearing delayed credit to the Government account. The consequential demand under section 220(2) depends on the correct computation of the primary interest levy and must be recomputed accordingly. The discussion applies CBDT Circular No. 261, banking and treasury payment rules, and prior judicial authorities to the computation of cheque-based tax payments. Case-Laws Income Tax Fri, 21 Aug 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=397722