Tax Deducted at Source or Tax Collection at source is the important part of revenue (TAX) collection of Government. Every Employer knows only 1.5% Interest rate on late deposit of TDS Payment, but they forget they pay 3% Interest to Government. After deducting TDS from specified payments, are deliberately not depositing the taxes so deducted in Government account and continue to deploy the funds so retained for business purposes or for personal use. CBDT is stressing on compliance of the due date of deposit of tds by the deductor.
Interest Calculation procedure on Late Deposit of TDS by 1 Day:
TDS Deductor deducted TDS in the Month of August-13, It means Due date of this deduction of TDS payment will be comes on 7th Day of September, 2013. If TDS Deductor deposit TDS on or after 08th Day of September, 2013 i.e. one day delay regarding Depositing of TDS Payment. Interest will be applicable for 2 months from 01.08.13(date of deduction) to 08.09.13 (date of deposit) for two months @1.5 % per month = 3%
Therefore, TDS payment don't deposit late.
Interest Calculation procedure on Late Deposit of TDS by 1 Day:
TDS Deductor deducted TDS in the Month of August-13, It means Due date of this deduction of TDS payment will be comes on 7th Day of September, 2013. If TDS Deductor deposit TDS on or after 08th Day of September, 2013 i.e. one day delay regarding Depositing of TDS Payment. Interest will be applicable for 2 months from 01.08.13(date of deduction) to 08.09.13 (date of deposit) for two months @1.5 % per month = 3%
Therefore, TDS payment don't deposit late.
