TMI BlogInterest on TDS late payment u/s 201(1A) of the Income-Tax Act 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... Interest on TDS late payment u/s 201(1A) of the Income-Tax Act 1961 - By: - Pradeepta Pyne - Income Tax - Dated:- 26-8-2022 - - Extract of the section 201(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required by or under this Act, he or it shall be liable to pay simple interest,- (i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and (ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to the date on which such tax is actually paid, and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200 : Now the month mentioned over here is not defined under the act and Traces/ CPC-TDS considere month as a British calendar month. Where as in the well settled cases the ITATs have considered the month be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30 days instead of British calendar month The Case laws are UTI MUTUAL FUND, MUMBAI VERSUS DCIT, CENTRALISED PROCESSING CELL-TDS, GHAZIABAD [2019 (7) TMI 178 - ITAT MUMBAI] ECONOMIC LAWS PRACTICE VERSUS CIT (APPEALS) - 59 MUMBAI [2019 (12) TMI 1032 - ITAT MUMBAI] E.I. DUPONT INDIA P. LTD. VERSUS DY. COMMISSIONER OF INCOME-TAX, CPC-TDS, VAISHALI, GHAZIABAD [2019 (2) TMI 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23 - ITAT DELHI] All the above-mentioned cases have referred to the decisions of the High Courts (Specially Gujarat High Court) and the Apex court to define months as to what it should be. The below mentioned table shows the present practice of Traces/ CPC-TDS As per Traces/ CPC-TDS [Month = British calendar month] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. Rs. Rs. Date of Credit / Payment (earlier) TDS Amount Actual Date of Deduction Due date of Payment Actual date of Payment Late deduction(in Days) Late deduction(in months) Interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for late deduction @1% p.m. Late payment (in days) Late payment (in months) Interest for late payment @ 1.5% p.m. Total Interest 25/04/2022 100 30/04/2022 07/05/2022 07/05/2022 0 0 - 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 - - 25/04/2022 100 30/04/2022 07/05/2022 08/05/2022 5 1 1.00 8 2 3.00 4.00 25/04/2022 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 25/04/2022 07/05/2022 08/05/2022 0 0 - 13 2 3.00 3.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per Case laws [Month = 30 days] Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. Rs. Date of Credit / Payment (earlier) TDS Amount Actual Date of Deduction Due date of Payment Actual date of Payment Late deduction(in Days) Late deduction(in months) Interest for late deduction @1% p.m. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Late payment (in days) Late payment (in months) Interest for late payment @ 1.5% p.m. Total Interest 25/04/2022 100 30/04/2022 07/05/2022 07/05/2022 0 0 - 0 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - - 25/04/2022 100 30/04/2022 07/05/2022 08/05/2022 5 1 1.00 8 1 1.50 2.50 25/04/2022 100 25/04/2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07/05/2022 08/05/2022 0 0 - 13 1 1.50 1.50 I hope the matter is now very clear from the above table that TDS authority is charging interest from the assessee and what the interest should be. Thank you Pradeepta Pyne - - Sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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