Please Help: Income Tax-TDS
Posted Date : 21-Dec-2011 , 09:23:26 am | Posted By: CA DEBJIT MAJUMDER
Category :
Income Tax | Answers :
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Comments :
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XYZ LTD deducted TDS on Salary on 28.08.2010 and deposited into bank on 19.09.2010. subsequently Interest on delay deposit of TDS ( i.e for the period of 28.08.10 to 19.09.10, i.e. 1 month) was paid on 31.03.2011. Department claim for Interest for the period from 19.09.2010 to 31.03.2011 on Interest amount. As per section 201(1A) , there is no such provision of Interest on Interest.Whether A.O. in this respect is correct? Under which provision AO can claim for Interest on Interest? |
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| Posted By : Anshul Sharma |
21-Dec-2011, 06:26:05 |
| Yes, Interest @1.5% for the whole month is to be deposited when it was actually paid . ( Refer to Clause ii below)
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 deducted to the date on which such tax is actually paid,
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| Posted By : ABHASH KANSAL |
21-Dec-2011, 10:44:59 |
| actually A.O. is not asking for interest on interest if he is saying so then he is technically wrong,in my opinion he asking for the interest on the TDS amount
the amount paid by you is first adjusted towards the interest and then towards TDS, so that why he asking for the interest on the remaining amount and from that point of view he is technically right.
if you wanna any more info regarding the same fell free to contact me@9868330550
have a nice day ahead |
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