![msprc interest calculation tool msprc interest calculation tool](https://i.stack.imgur.com/KDk0t.png)
However, since this amount is greater than the TDS amount of Rs 4000, the late fee is restricted to Rs 4000.īesides, you are also liable to pay interest. Return to be filed on 31st July, TDS amount Rs. However, such a fee is restricted to a maximum of the amount of TDS.įurther, as a relief measure of Corona Pandemic, the due date for the return of Q4 FY 2019-20 has been extended to 31st July 2020.Įxample: Interest calculation on Late filing of TDS Returns If the quarterly returns are not filed within the prescribed due dates, a late fee of Rs 200 per day (two hundred) is applicable under section 234E.
![msprc interest calculation tool msprc interest calculation tool](https://www.calconic.com/user/themes/calconic/images/calculator-builder_calconic.gif)
So, even though there is a delay of 4 days, the interest payable is for three months.
![msprc interest calculation tool msprc interest calculation tool](https://s2.studylib.net/store/data/018482497_1-ed67f506c7098869c3fa4f03f545e865-768x994.png)
For calculating delay in a month, each month is treated based on ‘Calendar Month’. TDS deposited on 4th May (due date was 30th April)Įach month is treated based on the ‘Calendar Month’ instead of counting the number of days. This interest applies to “Non-payment of tax after deduction, either in whole or in part”.Įxample: Interest calculation on Late Payment of TDS Under Section 201(1A), you will have to pay interest of 1.5% per month or part of the month, from the Date of Deduction(of TDS) to the Date of Payment. Note: Calendar Month April 2020 and Calendar Month May 2020 are considered for Calculation Interest on Late Deduction = 12300 * 2 months * 1/100 = 246. at the time of giving credit to the party or actual payment of the dues, whichever is earlier) but was deducted on 3rd May, then the TDS interest charged would be 1% of the amount of late deduction. If tax was deductible on 12th April (i.e. This applies to “Non-deduction of tax at source, either in whole or in part”.Įxample: Interest calculation on Late Deduction of TDS Under Section 201A, you will have to pay interest of 1% per month or part of the month from the date on which TDS is deductible (on the Day of Transaction) to the date on which TDS is deducted.
![msprc interest calculation tool msprc interest calculation tool](https://www.divorcefinancetoolkit.co.uk/wp-content/uploads/20111014-100821-225x300.jpg)
The interest is to be calculated as per the explanation and examples mentioned below: That is, if the normal rate of TDS is 10%, now TDS is to be done at 10 - 25% = 7.5%.) (All TDS Rates for Non-Salary payments have been cut by 25% upto 31st March 2021. Also, the Due dates for Q1 and Q2 of 2020-21 have been extended to 31st March 2021. However, for the Financial year 2019-20 it is extended due to COVID Pandemic. Normally it is 30 days from the end of the Financial Year, which is 30th April every year. Note: The last date for filing TDS Returns of Q4 of 2019-20 is 31st July 2020. There are three types of Interest / Late filing fee of Late Payment of TDS. Penalty (if TDS is not filed within one year from the due date) Interest (if you do not deposit the TDS amount in time) Late filing fee (if you do not file the return by cut-off date) In case you fail to deposit TDS by the correct date, the following penalties are applicable: So, whenever there is a delay in the Deposit of TDS, it is recommended to pay the applicable interest as well. If the deductor deposits TDS (after the due date) without interest, upon processing of the return, they may receive a demand notice from TRACES with interest and penalty, if any. There could be various reasons leading to the delay in payment of TDS. Why it is Important to Pay Interest When there is delay in Paying TDS Amount? Calculate Late Deduction, Late Payment, and Late Filing of TDS.