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TDS Payment Due Dates and Interest on Late Payment

  1. TDS Payment Due Dates
  2. Interest on late payment of TDS
  3. How to make Payment of TDS

TDS Payment Due Date

Month Due Date of TDS Payment
April 7th May
May 7th June
June 7th July
July 7th August
August 7th September
September 7th October
October 7th November
November 7th December
December 7th January
January 7th February
February 7th March
March 30th April

The due date for payment in case of TDS on sale of immovable property under section 194IA is 7th of next month including the month of March Notification 39/2013 (Applicable till month of May 2016). The date is extended to 30 days from the end of month beginning from June 2016. For eg – TDS deducted on 15th June 2016 is required to paid on or before 30th July 2016.

These due dates are not applicable for government’s offices or who have any special permission from Assessing Officer.  There due dates are

  1. When TDS is deducted by an office of the Government and tax is paid without production of an income-tax challan

On the same day on which tax is deducted.

  1. When TDS is deducted by an office of the Government and tax deposited is accompanied by income-tax challan

On or before 7 days from the end of the month in which tax is deducted.

  1. When TDS is deducted by a person (other than an office of the Government) and Assessing Officer has permitted quarterly deposit of tax deducted under section 192, 194A, 194D and 194H.
Quarter Last Date for Filing Return
1st April to 30th June 7th July
1st July to 30th September 7th October
1st October to 31st December 7th January
1st January to 31st March 30th April

A common question asked is what is last date of payment when above mentioned due date falls on a Sunday or public holiday. In this case the next working day can be considered as last day of payment of Tax Deducted at Source.

When you are making electronic payment, keep in mind that payment made after 8 PM is processed on next working day. And if this happens you can’t argue that i had made payment but bank processed it next day so payment is considered to be made the next day and you has to pay interest.

Assessing officer with prior approval from joint commissioner may allow the quarterly payment of tds. In that case last date of payment is 7th of the next month after each quarter and 30th April for the last quarter.

Interest on Late Payment of TDS

TDS Late Payment Interest Calculator

Interest is chargeable on short payment/late payment of TDS. There can be following scenarios :-

  • When TDS is not deducted
    Interest at the rate of 1% per month or part thereof, for the period from the date on which TDS is deductible/collectible to the date on which TDS/TCS is actually deducted/collected.
  • When TDS is deducted but not paid
    Interest at the rate of 1.5% per month or part thereof, for the period from the date on which TDS is actually deducted/collected to the date on which such TDS/TCS is actually paid.

Calendar month is considered in calculating interest therefore if you delay payment by one day, you have to pay interest for two months. For example, if TDS is deducted in month of July and deposited on 8th of August then you have to pay interest for 2 month i.e. July and August. Total interest payable shall be 3%.

Interest paid on delay in deposit of TDS is not allowed as a expenditure under Income Tax Act.

Notes – Interest on late payment of TDS can be paid before furnishing TDS return or after demand raised by Traces. Such interest can be adjusted from amount remaining in any TDS Challan (under any section).

How to make Payment of TDS

All corporate assessee and other assessee who are subject to compulsory audit under section 44AB are compulsorily required to use electronic transfer to make TDS payment.
TDS is paid by Challan No./ITNS 281.
TDS payment link – NSDL.

Video Guide on How to make TDS Payment

Step 1 – Go to https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Step 2 – Select Challan No./ITNS 281 (Tax deducted at Source/ Tax collected at Source from corporates or non-corporates)
last date for payment of tds

Step 3 – Select the type of deductees. Deductee is the person from whose payment you have deducted TDS. If deductee is a person other than company, then you should select (0021) Non-Company Deductees otherwise select (0020) Company Deductees for depositing TDS/TCS deducted of the companies. From this it is clear that we are required to use separate challan for company and non company deductees.
tds late payment interest

 

Step 4 – Enter the TAN number and fill the basic details in the form. City, State and pincode is compulsory. Address, email id and mobile are optional.

Step 5 – Select the type of the payment. If it is a normal payment then select (200) TDS/TCS Payable by Taxpayer or if it is a payment against the demand raised by the I.T. Department for eg payment of interest or late fee under section 234E then select (400) TDS/TCS Regular Assessment (Raised by I.T.Deptt)

Step 6 – Select the nature of payment. It should be based on the nature of the payment for which you have deducted TDS and now making payment to the Income Tax Department.

Step 7 – Select the bank from which you are going to make the payment.

Step 8 – Enter the verification code and click on Proceed.

Step 9 – Now you will get a filled form. Check the details and make sure the Full Name field showing the same name of the person who is making the payment.

Step 4 - How to pay TDS/TC online

 

Step 10 – Click on submit to bank and then you will be proceed on the bank website. The option of entering the amount and other details will be available on the bank website.
Income tax department’s official guide on TDS

Related Pages:

Also Read:

Composition Scheme under GST
What is Goods & Service Tax (GST) and its Fundamentals
TDS under GST

 

tds deposit date

 

157 comments

  1. Sir, As you said that TDS paid on late depositing of TDS will be allowed as an expense to employer under the head business and profession , but sir if you provide the section under which section it is allowed then it will be easy to understand

  2. Sir, Whether interest paid on late depositing of TDS will be allowed as expenditure under Income Tax Act

  3. Dear sir
    whether TDS payment due date would be extended as Banks will remain closed on both 6th and 7 th of July.
    thank you

    • Rohit Pithisaria

      In the absence of any specific circular for the due date of TDS deposit, in case the original due date falls on public or bank holiday, we can assume the next working day will be the due date. On the safer side I suggest you should assume the previous day as the due date because if the payment is made via Online Banking then this contentions cannot be said valid.

      There is a CBDT Circular for the same issue for the interest u/s 234B and 234C but no specific circular is issued for the interest u/s 201(1A).
      The CBDT Circular No.676 dated 14/01/1994 is as follows:-

      “..if the court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the court or office (or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any installments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961, would not be charged.”

  4. Hello sir

    we have deduct the TDS on various date in April’16 but not paid in 7th May’16 we will pay the TDS on 5th June’16 so how many % interest we’ll pay and and how manny month calculated .

  5. Professional Fees Paid without deducting TDS of Rs.150,000/- in the month of May-2015. But in the month of June Fees payment time deducted Last 150000/- TDS of Rs. 15000. Which date considered for TDS Online Payment Due Date.? Please Guide Us.

  6. RAJESH DEYONDI

    BY WHICH CHALLAN FORM WE DEPOSIT INTREST ON LATE PAYMENS OF TDS IN Q 4 2015-16 PLEASE SEND ME THE CHALAN FORM

  7. Dear Sir, I purchased flat in 2010(>50 lacs) and payment given to builder from June 2013 as per demand. But I have not paid 1% TDS.
    Now how to calculate penalty and late fee to fill form 26qb. Please help.
    e.g. on 13 July – paid 11 lacs to builder
    on 20th Nov 12 lacs paid to builder and so on

    Now how to calculate penalty and late fee for such payments for 1% TDS. Please help.

    • Rohit Pithisaria

      Hello,

      Please read the below article for complete details. Let me know if you still have any other queries.

      Thanks

  8. Sir,

    For the last Quarter of 2015-2016 (Jan-march) one bill of amount has been paid for which the tds has not been deducted. Whether the same can be paid
    within the due date i.e.april 30th 2016.

    • Rohit Pithisaria

      The due date of the TDS deposit is the next of the 7th month. So you can deposit it any time with interest. 30th April 2016 is the due date for the TDS deducted or to be deducted in the month of March.

  9. sir,
    i have paid commission in every month from april 2015 to march 2016 but not deducted tds till november month, at the end of november i realised to deduct tax at source so i deducted and filed return of all payment in third qtr. and not adjusted in ist & 2nd qtr. please advise on this.

    • Prateek Agarwal

      You need to file return and make payment as soon as possible along with payment of interest and penalty.
      You are saying that you are liable to deduct TDS so you must also required to Audit under section 44AB. If you don’t pay tds and file return then your CA has to report it in the audit report. So you can not escape from it.

  10. My company has just started its operation on 10th March, 2016. I have to pay a sales commission for the sale of March 10 to 31st, so do i need to deposit the TDS before 30th April or should I deposit the TDS in next month, as payment made on 7th April, but accrued on 31st Day of March. Please Help.

    • Rohit Agarwal

      You are required to make the payment before 30th April 2016 as the amount is credited on or before 31 March 2016 and will be treated an an expense for the FY 2015-16.

  11. I have deducted TDS on 20.03.2016. Please tell me the due date of Payment.

    Another question, i have deducted TDS on 20.12.15 but i paid tds on 02.02.16. please tell me how many months we shall pay interest.

    • Prateek Agarwal

      For the TDS deducted in month of march, due date is 30th April. However for TDS deducted in case of purchase of immovable property under section 194IA, due date is 7th April.
      Interest for 3 months i.e 4.5% is to be paid.

  12. I have deducted TDS @1% for purchase of property in the month of March 2016. The date for TDS deposit will be April 7 or April 30?

    • Rohit Agarwal

      The TDS deposit due date shall be 7th April in case of TDS on sale of immovable asset as 26QB is required to be filed within 7 days from the end of the month in which TDS is deducted.

    • CA GOURAV DANG

      30 APRIL , BCUS THERE ARE RELEXATION IN TIME FOR MONTH OF MARCH ONLY,

      • Prateek Agarwal

        Please take a look at this notification. It is clearly mentioned that 26QB is to be filed within 7 days of the next month and form 26QB cannot be filed without paying TDS.

        • If due date is 07/04/2016 of 194IA for March and same has been deposited say on 16/04/2016 whether any late fee will be applicable? or only interest of two months will be charged?

          • Late fee is applicable in case of delay in furnishing TDS return or Form 26QB. In your case Late fee is applicable as you are required to file 26QB which is challan cum declaration statement. So you are require to pay interest for the 2 months as well as late fee @ Rs 200 per day for the delay.

  13. I will be crediting commission and interest to my staff’s account on 31.03.2016.What is the last date to pay TDS that needs to be deducted.Also what is the last date to file TDS return.
    Kindly guide.

  14. dear sir,
    I have purchased a resale flat for 62 Lac on APR 2014 and I was not aware of 1% TDS need to be paid. I have made a full payment of 14 Lac by cheque and 48 Lac by bank loan without deducting any TDS.
    Now I have received mail form TDS saying “26QB Statement not yet filed for Purchase of Property during FY 2014-15”
    I have contacted seller to give me the TDS amount and i am ready to pay late fees…but seller is not ready to pay..what should be done??

  15. Hi rohit,
    I too got notice for tds.. I have purchased a flat of 62 lakhs in April 2014.since i was not aware of it i didn’t deduct tds from sellers amount.. Now what should i do? I contacted seller for the payment of tds but they are not willing to give amount.. What can be done in this case? Is there any legal way to make seller to pay tds noney

  16. i have reced. notice from tds traces for interest on late payment F y -2008-09 how to pay this and what is section , what type can you told me sir show same challan of payment

    • Rohit Agarwal

      Can you please share a scan copy of the notice as the demand is way back and not sure whether it is available in Traces.

  17. Hi,
    I purchased a flat in Dec 2014 and made the 1% TDS payment at that time.
    On 17 Mar 2016 I got an email from CPC demanding 520 for late deduction. Strange thing is that Order pass date on the notification was 2 Feb 16. Why did I get the email so late?
    Can you explain a little on this late deduction fee, how do I pay this and anything else I have to do after making the payment?
    Thanks so much in advance

  18. Monthly I am payment of Rs. 30 lakh of tds each month on regular basis as 7th of the next month.
    Bt Now in march month which is due date for payment of Rs. 30lakh. Whether is it 7th april or 30th april?
    Kindly Give me guidance as soon as possible.

  19. Dear Sir,

    I have purchased a house for 55 Lac on MARCH 2015 and I was not aware of 1% TDS need to be paid. I have made a full payment by bank loan without deducting any TDS.
    Now I have received mail form TDS saying “26QB Statement not yet filed for Purchase of Property during FY 2014-15”
    If I pay TDS now, how much amount I will need to pay with interest and will I need to pay late fee. Is there a way to get this back from the seller?
    Also, somewhere it is mentioned that if they do not provide the PAN then the TDS will be 20% – can u please explain this a little.
    Thanks a lot!

  20. Dear Sir,

    I have bought an under construction property in March 2015 without knowing the fact that I have to deduction TDS if the agreement value is more than 50lacs.

    I did the payment for TDS of 1% without interest and fine and for this reason.

    I received intimation for rectification order U/S 200A of the income tax act 1961 and would like to know steps of paying this online and rectifying the same.

    Appreciate your help.

    Thanks

  21. Dear Sir,

    I have purchased a resale flat for 69 Lac on AUG 2014 and I was not aware of 1% TDS need to be paid. I have made a full payment of 22 Lac by DD and 47 Lac by bank loan without deducting any TDS.
    Now I have received mail form TDS saying “26QB Statement not yet filed for Purchase of Property during FY 2014-15”
    If I pay TDS now, how much amount I will need to pay with interest and will I need to pay late fee.

    • Rohit Agarwal

      You are required to deduct TDS in Aug 2014 @ 1% of the contract price i.e. Rs 69,000. Also this amount should have been deposited to the IT Department before 7th Sep 2014. As the payment is not yet made, you have to pay interest @ 1% per month or part of the month from Aug 2014 to Mar 2016. The total interest which is required to be paid is Rs 13,800 (Aug 2014 to Mar 2016 – 20% if the amount paid in March 2016) along with TDS amount of Rs 69,000.

      • As ADS amount was not deducted by me while paying the amount to seller.
        Do i need to pay the late fee (200 rupees per day)

      • Thank you for your input, just wanted to know as ADS amount was not deducted by me while paying the amount to seller.
        Do I need to pay the late fee (200 rupees per day)

        • Rohit Agarwal

          Late fees u/s 234E is applicable only in case of delay of filing TDS return. This section applies only to person who is required to file TDS return. In your case 194IA, you do not require to file any TDS return. So no penalty is levy on you.

    • Rohit Agarwal

      You are also required to pay a late fee of Rs 200 for each day till the furnishing of form 26QB. Please check the below article for more details

      http://taxadda.com/income-tax/tds-tcs/consequences-late-deposit-tds-and-late-wrong-filing-tds-return/

      I apologies for the inconvenience caused to you.

  22. Rohit,

    I purchased a property in 20 Dec 2014 with agreement on same day. However, I paid the full amount to the seller without deducting TDS under impression he will be taking care of it as promised by him. Now today in Mar 2016 I got notice for payment of TDS. As now I have to pay the 1% TDS on property will I have to incur any late fee and Interest penalty ? Or it will be just interest penalty and not late fee as I have not deducted the TDS on property yet due to full payment? Is there any way out if I just pay the 1% TDS or will I get demand notice later from IT?

    NB: the seller will be transferring me the 1% TDS. But is there any way out?

    • Rohit Agarwal

      The TDS should have been deducted in Dec 2014 and due date of such TDS payment is 7th Jan 2015. As the TDS is not deducted, you have to pay interest @ 1% per month for the period from the date on which TDS is deductible/collectible to the date on which TDS/TCS is actually deducted/collected. So you have to pay 16% interest (Dec 2014 to Mar 2016, if you complete TDS payment in Mar 2016) on the TDS payable amount. I suggest you to pay TDS amount as well as interest of late payment of TDS.

      • Thanks Rohit, so late fee will not be applicable to me ? Also my agreement has 2 buyer and 2 seller. So i need to file 4 form (2each for my wife and myself)
        Also if you could let me know how much should I pay with interest provided i pay in Mar 16.
        Again Rohit its indeed a great help with your comments and as suggested i will need to pay interest when filling form 26QB?

        • Rohit Agarwal

          You have to pay late fee of Rs 200 per day u/s 234E. Yes, you are required to file 4 form for depositing TDS via form 26QB.

          FYI – We are having a very limited time for replying to the queries of our website visitors so it is not possible for us to do the individual calculation. Hope you will understand. Kindly let us know if you are having any other difficulties.

      • Hi Rohit,

        Thanks for your update. Can you please let me know if i need to pay late fees or just the 1% TDS with interest?

        Also can the seller claim the tds i file on his behalf even though i am deducting it in this year as opposed to last year dec 2014.

        Your thougts are appreciated

    • Rohit Agarwal

      You are also required to pay late fee which is Rs 200 per day (maximum upto the TDS amount). Also there can be a penalty u/s 271H for delay in furnishing of TDS return which can be Rs 10,000 (upto maximum of Rs 1,00,000) as the TDS return is not filed within one year from the due date of furnishing such return. Please check the below link for more details

      http://taxadda.com/income-tax/tds-tcs/consequences-late-deposit-tds-and-late-wrong-filing-tds-return/

  23. BY MISTAKE I HAVE ENTERED ERRONEOUS DATE OF TDS IN FORM 26QB, SO IT SEEMS THAT I HAVE DEPOSITED IT BEFORDATE AND SEEMS TO BE ADVANCE TAX. PL SUGGEST WHAT TO DO

    • Rohit Agarwal

      I think you have to contact your AO for making correction in TDS Challan. Please check below link for more information:-

      https://www.tin-nsdl.com/oltas/oltas-note.php

      As per point 5 “For rectifications in challans paid through online mode (internet challan) , taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD).”

  24. Venkateswaran

    I have received a notice under sec 200A for late fee payment of TDs.
    Pl infgorm mwhich fgorm to use and how to make the payment?

    • Rohit Agarwal

      Please refer to the article How to pay TDS/TCS Online

      In Step 5, you are required to select “(400) TDS/TCS Regular Assessment (Raised by I.T.Deptt)”. Select the section for which you have filed TDS return and once you redirected to the bank side, you will get an option for entering interest amount for late deduction of TDS. It take around 2-4 days for a challan to show in TRACES. Once the Challan is available in Traces then you can add that Challan to the Demand raised by the IT Department and submit it for processing.

      • Abhitosh kumar

        Hi Rohit,

        I too have received the above notice and I am an individual buyer and does not have a TAN no. How am I suppose to make payment then because for the initial tds payment I didn’t required the TAN ?

        • Rohit Agarwal

          In case you are paying any demand for the TDS on Sale of Property, then use the option of Demand Payment – (Payment against CPC (TDS) raised demand (only for TDS on Sale of Property) on TIN Portal.
          Direct Link for making demand payment for the TDS on Sale of Property – https://onlineservices.tin.egov-nsdl.com/etaxnew/PaymentDemand?rKey=962898361&link=demand

          • Puneet Aggarwal

            I received the demand from CPC(TDS) for interest on late deduction of TDS on sale of property and I made payment using above link on nsdl site (Demand Payment). please let me know further steps to be taken to close the matter.

          • Rohit Agarwal

            I suggest you to submit a written request to the Assessing Office along with the photocopy of the Challan for settling the demand raised by CPC.

          • Puneet Aggarwal

            Hi Rohit,

            I also received a demand from CPC(TDS) for interest on late deduction of TDS on sale of property and I deposited using link of “Demand payment’ on NSDL site. Please let me know, if anything further needs to be done after this.

          • Rohit Agarwal

            I suggest you to submit a written request to the Assessing Office along with the photocopy of the Challan for settling the demand raised by CPC.

    • Hi Rohit,

      I have received a notice under sec 200A for late fee payment of TDs. Payment date 18-March-2015 TDS filed/paid date 27-April-2015. As I was searching due date to pay TDS for the month of March is 30-April. and TDS Late fee is applicable 1-June-2015. in my care both are not valid. please suggest wt could be the solution.

      • Rohit Agarwal

        The due date of TDS payment for March 2015 is April 2015. The return due date for the quarter is 15th May 2015. So, if both the things are correct, then the IT Department mush have some mistake. Can you please send me the scan copy of the notice (infor@taxadda.com) so that I can review it and suggest you further.

  25. I have received RECTIFICATION ORDER U/S 200A OF THE INCOME TAX ACT, 1961 for payment of interest on late deduction of TDS.

    Please let me know which website to login to pay this interest charges.
    Also which form /Challan no. to be refered for paying this interest amount online ?

    Regards

    • You are required to make a account on TRACES for applying payment of interest on late deduction.
      Please refer to the article How to pay TDS/TCS Online

      In Step 5, you are required to select “(400) TDS/TCS Regular Assessment (Raised by I.T.Deptt)”. Select the section for which you have filed TDS return and once you redirected to the bank side, you will get an option for entering interest amount for late deduction of TDS. It take around 2-4 days for a challan to show in TRACES. Once the Challan is available in Traces then you can add that Challan to the Demand raised by the IT Department and submit it for processing.

  26. Rajesh Ranjan

    I made a TDS payment where date of agreement was 08 feb 2015 , date of payment was 13th march 2015 and date of TDS payment was 20th march 2015. Doees this qualify for late payment of TDS ?
    I got notice from IT Department

    • Rohit Agarwal

      TDS is deductible on due or paid basis whichever is earlier. If TDS is required to be deducted on 08 Feb 2015 then the due date of payment of such TDS is 07 March 2015 and the contention of the IT Department of late payment of TDS is valid otherwise the due date of payment of TDS is 30 April 2015 and there is no delay in payment of TDS. Please review your agreement again for finding out whether TDS is due in Feb or March.

  27. I have received notice saying “Defaults have been identified in the Regular statement filed by you for Acknowledgement Number xxxxxxcc and processed by ITD u/s 200A. ”
    Could you please give the procedure to deposit this late fee.
    Thanks a lot!

    • Rohit Agarwal

      Please refer to the article How to pay TDS/TCS Online

      In Step 5, you are required to select “(400) TDS/TCS Regular Assessment (Raised by I.T.Deptt)”. Select the section for which you have filed TDS return and once you redirected to the bank side, you will get an option for entering penalty amount for deposit of late fee u/s 234E. It take around 2-4 days for a challan to show in TRACES. Once the Challan is available in Traces then you can add that Challan to the Demand raised by the IT Department and submit it for processing.

      • Thanks for your prompt and detailed reply.I have to make payment for late fee. After step one in above procedure kindly confirm if they have made it simpler to pay any demands raised by IT department.As the second option ” Demand Payment” can be used.
        I did confirm this on the customer care toll free number but the lady was telling some other procedure till I told her this method(We can enter among other fields the commmunication reference number and the original acknowledgement number)
        I just wanted to confirm this before paying I think it is a new thing.

        • The Demand Payment option available on NSDL tax payment website is only for paying TDS demand on Sale of Property (specifically mention in the portal). I suggest you to follow my previous advice.

          • I apologise. I have paid TDS for buying flat and my fine is for late payment of TDS( on purchase of flat). Can in my case the second option be used for paying fines.Thanks and sorry again for the confusion.

          • Rohit Agarwal

            Then you can use that option. No worries!

      • Rajesh Ranjan

        Hi Rohit
        With respect to this reply of yours

        “Please refer to the article How to pay TDS/TCS Online

        In Step 5, you are required to select “(400) TDS/TCS Regular Assessment (Raised by I.T.Deptt)”. Select the section for which you have filed TDS return and once you redirected to the bank side, you will get an option for entering penalty amount for deposit of late fee u/s 234E. It take around 2-4 days for a challan to show in TRACES. Once the Challan is available in Traces then you can add that Challan to the Demand raised by the IT Department and submit it for processing.”

        I am confused about last step. How would I add my challan to Demand raised by IT department.
        I got deemand note from IT Department in email but don’t see it anywhere in TDS TRACES

  28. Dear Sir,

    we will pay TDS in the month of Mar 2016 Salary and Non Salary, please tell me when is the due date ?

    • Prateek Agarwal

      You are making payment on which TDS is required to be deducted ?
      If yes then the due dates is 30th April for the payments made in March.

  29. Sir,
    due date in 7 th of every month but any computor server problem i can not pay the right time means 7th.next day i will pay the tds so how will charge of interest % and % of month wise or day wise calculating. please help me.

  30. Pradip Mittra

    I have made 3 payments since July 2013 as part payments to the builder ( property under construction) where I forgot to deduct 1% TDS. Now do i need to correct the same by deduction TDS of those three payments in my next payment to builder? And further I need to deposit this TDS to GOI along with late payment interest and penalty? Please clarify.

  31. Dear Sir,
    Tds Deposit Date is 7th of but 6th Feb Is Sunday & 7th Mahashivratri Gujarat is Bank Holiday. So Tds Pay on 8th feb what will be actual date of payment will interest be payable or not.

    • Prateek Agarwal

      If holiday is on 7th Dec then in the absence of any specific circular for the due date of TDS deposit, in case the original due date falls on public or bank holiday, we can assume the next working day will be the due date. On the safer side I suggest you should assume the previous day as the due date because if the payment is made via Online Banking then this contentions cannot be said valid.

      There is a CBDT Circular for the same issue for the interest u/s 234B and 234C but no specific circular is issued for the interest u/s 201(1A).
      The CBDT Circular No.676 dated 14/01/1994 is as follows:-

      “..if the court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the court or office (or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any installments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961, would not be charged.”

  32. Sir,

    when due date 7 th is Holiday then what will be actual date of payment will interest be payable or not.

    • Prateek Agarwal

      If holiday is on 7th Dec then in the absence of any specific circular for the due date of TDS deposit, in case the original due date falls on public or bank holiday, we can assume the next working day will be the due date. On the safer side I suggest you should assume the previous day as the due date because if the payment is made via Online Banking then this contentions cannot be said valid.

      There is a CBDT Circular for the same issue for the interest u/s 234B and 234C but no specific circular is issued for the interest u/s 201(1A).
      The CBDT Circular No.676 dated 14/01/1994 is as follows:-

      “..if the court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the court or office (or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any installments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961, would not be charged.”

  33. Sir, I wanted to know the calculation on interest component of TDS on interest OF loan paid to bank but not deducted during payment of EMI
    April 3,015.00
    May 2802
    June 2774
    July 2567
    August 2530
    September 2407
    October 2209
    November 2157
    December
    January

  34. M. Ragavan accountant

    I have received a notice from traces tds asking my firm to pay a certain amount which was short paid by us along with some penal interest. Under which chalan number do I pay the same and is it coming under self assessment tax or regular assessment as this tds was deducted from a contractor. We are a new firm and not yet completed our first financial year. Please advice how our firm has to pay this amount Rs.501/- is payable and interest on the same is Rs.1679/-

    • Rohit Agarwal

      You are required to pay the TDS using ITS CHALLAN NO./ITNS 281. Also select (400)TDS/TCS Regular Assessment (Raised by I.T. Deptt.) in nature of payment.

      You can pay the demand from here.

  35. i am a officer rank employee and so far have obeyed IT rules.This year with a thought of having an house to get IT concession the advance tax not paid by me .As this this workedout now exceeds my take home salary.Shall i Pay TDS both in FEBRUARY & MARCH 2016

    • Hello Abdul,

      I am not sure whether I followed you 100%. You can pay advance tax in the month of Feb as well as in March to comply with the provision of Advance Tax.

  36. Dear Prateek
    Suppose the due date 7th falls on Sunday or any public holiday, can we deposit TDS on next working day presuming it as considerable due date.
    Thanks
    Saurabh

    • Rohit Agarwal

      Hello Saurabh,

      If holiday is on 8th Dec then surely the due date is 7th of Dec and therefore interest is to be paid.
      If holiday is on 7th Dec then in the absence of any specific circular for the due date of TDS deposit, in case the original due date falls on public or bank holiday, we can assume the next working day will be the due date. On the safer side I suggest you should assume the previous day as the due date because if the payment is made via Online Banking then this contentions cannot be said valid.

      There is a CBDT Circular for the same issue for the interest u/s 234B and 234C but no specific circular is issued for the interest u/s 201(1A).
      The CBDT Circular No.676 dated 14/01/1994 is as follows:-

      “..if the court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the court or office (or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any installments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961, would not be charged.”

  37. Hello,

    Due to budget issues, if my company pays JAN rent of building in FEB (after discussing with owner). This includes both rent to owner and TDS amount to govt. in FEB (by mid of FEB).
    Is there any interest involved? In my opinion, if my company is paying in TDS and rent in same month, then there should not be any interest.
    Please suggest.

    • Prateek Agarwal

      Your opinion is right. But keep in mind that you have to credit the account of landlord in Feb otherwise interest is payable.

      • Thanks Prateek.
        Yes, we will credit to landlord’s account (JAN’s rent) in FEB (after 7th) and same TDS to govt. (after 7th).

  38. Hello Sir,

    Can you please help us to understand if the interest needs to be paid in the following case::

    if TDS was filed on time and payment was delayed by one day and this delay happened due to bank. We instructed to our bank on 7th of every month as this bank is not recognized one it has hit the TDS account on 8th which reflects tax deposit date as 8th. So in this case are we liable to pay the interest or it can be exempted.

    Thanks!!

    • Prateek Agarwal

      Some banks processes the payment after 1 or 2 days. This also happens when you make payment after 8pm.
      But in any case you are required to pay interest.
      In future you should keep in mind the time taken by bank for processing and make payment accordingly.

    • As per income tax act. 1961 payment should be credited in govt. account date of 7 before 8 pm or before banking time. by unfortunate if delay than Interest should be charge 1.5 % of Total TDS Amount paid ( for Whole months, not allowed in parts of day)

  39. Dear Sir,
    I was not aware about TDS payment procedure and did not pay TDS for 4 payments made to builder in FY 2014-2015 through bank loan. (Bank paid 99% of the below amount)
    a) 8 Lacs on 17-May-2014 TDS: 8000
    b) 23 lacs on 9-July-2014 TDS: 23000
    c) 6 lacs on 12-Nov-2014 TDS: 6000
    d) 6 lacs on 24-Mar-2015 TDs: 6000
    I want to pay TDS now, ASAP.
    But before that I want to know a few information:
    May I club all 4 payments in a single, then what will be
    1. Date of Payment/Credit*
    (Date of Payment to the Transferor/Seller)
    2. Date of Tax Deduction
    Do I need to pay interest and late fees along with Basic TDS mentioned above? How much I need to pay for interest and late fees along with Basic TDS amount?
    Will there be any more Penalty/Fine on these amount? Kindly help me.
    Thank you in advance for your response.
    with regards –

    • Prateek Agarwal

      Hi Sudip

      TDS is not payable in case of transfer of immovable property when the amount of consideration is less than Rs. 50 Lakhs. Therefore you are not required to deduct TDS since amount is only Rs. 43 lakhs.

      For more information see TDS on Transfer of Immovable Property – Sec 194IA

      Happy to help you out if you need further information.

      • Hi Prateek,

        Thank you for your response. Sorry to mention that the total Flat cost is 56L. So far only 4 instalments have been asked by builder, i.e. of 43 lakhs.

        with regards,

        • Prateek Agarwal

          1) You cannot club the four payments as the date of payment is different.
          2) Date of tax deduction is the current date on which you are making payment.
          3) Interest is payable at the rate of 1% per month or part of month. So total interest will be as follows if you will pay the TDS in Dec 15.(Please note that month of payment is also included for interest calculation)
          May 14 – 8Lac – for 20 months – Rs. 1600
          July 14 – 23Lac – for 18 months – Rs. 4140
          Nov 14 – 6Lac – for 14 months – Rs. 840
          March 15 – 6Lac – for 10months – Rs. 600
          Total Interest – Rs. 7180

          4) No TDS return is required to be filed, therefore no late fees is payable.
          5) You can deduct TDS from the next amount payable to the builder.

          • Hi Prateek,

            Thank you a lot for your help.

            So, I need to pay the following amount through 26QB https://onlineservices.tin.egov-nsdl.com/etaxnew/PopServlet?rKey=-1978227725.

            Four payments need to made.

            Where,

            FY-2015-2016 AY- 2016-2017

            Payment Type – Instalment

            May 14 – 8Lac – for 20 months – (TDS Rs. 8000 + Interest Rs. 1600) – Total Rs. 9600
            July 14 – 23Lac – for 18 months – (TDS Rs. 23000 + Interest Rs. 4140) – Total Rs. 27140
            Nov 14 – 6Lac – for 14 months – (TDS Rs. 6000 + Interest Rs. 840) – Total 6840
            March 15 – 6Lac – for 10months – (TDS Rs. 6000 + Interest Rs. 600) – Total 6600

            “Fee” will be 0 for all payments. But bank paid only 99% of the above amount, leaving TDS amount. So I add TDS amount in the calculation.

            Ok..from next payment onwards I’ll deduct and pay the TDS immediately.

            Date of Payment/Credit*: As mentioned above. (17-May-14, 9-July-14, 12-Nov-14 and 24-March-15).

            with regards,

          • Prateek Agarwal

            All other things are correct.

          • Hi Prateek,

            Would you kindly confirm if “the Interest is payable at the rate of 1% or 1.5% per month or part of month.”? As per the builder it should be 1.5% per month or part of month.

            Here, Bank paid 99% of the instalment amounts and add them in Loan amount. 1% was supposed to paid as TDS.

            Thank you,
            Sudip

          • Prateek Agarwal

            Hi Sudip
            In reality you had not deducted the TDS from the amount paid. But the bank had made short payment to the builder. So it is assumed that TDS is deducted and thus interest @ 1.5% is to be levied.

          • Hi Prateek,

            Thank you a lot for your response.

            Do you think it is the best approach to pay the interest 1.5% to get rid of any penalty in future?

            And in this case “Date of tax deduction” should be “Date of payment to the builder”.

            with regards,
            Sudip

          • Prateek Agarwal

            Yes it’s best to pay interest at the rate of 1.5% and consider date of tax payment to builder as date of tax deduction.

          • Hi Prateek,

            Thank you a lot.

            with regards,
            Sudip

    • Rohit Agarwal

      Hello Sudip,

      Late fee is applicable in your case as 26QB is challan cum TDS statement. Please check this article
      http://taxadda.com/income-tax/tds-tcs/consequences-late-deposit-tds-and-late-wrong-filing-tds-return/

      Apologies for inconvenience caused to you.

  40. My TDS is due for the last 5 installment, can I make the payment along with interest in one form, or do i need to make the payment 5 different times one for each installment?

    • Rohit Agarwal

      You can make a single payment for all the 5 instalments along with the interest. No need to make 5 different payment as you can adjust the remaining challan amount, if any, in succeeding returns.

      • Thanks for the prompt reply, in this case what would be following in form 26QB?

        1. (Date of Payment to the Transferor/Seller) &
        2. Date of Tax Deduction*

        (As for some installment, TDS payment is due from last year)

        • Rohit Agarwal

          Hello Vivek,

          Please find my comment below: –

          1. (Date of Payment to the Transferor/Seller) -> It is the date on which the payment is made to the seller of the property.
          2. Date of Tax Deduction* -> Date on which you have deducted the TDS of the seller.

          As the TDS is for 26QB and the TDS is due in different financial year, I suggest you to make separate payment rather than one. If it is in any other case such as TDS for contractor or TDS on Salary etc then you can make the single payment for a single financial year.

      • Thanks Rohit!,

        In continuation to my previous query, I would also like to know about the following details required in form 26QB? what should be date of payment and date of tax deduction if I make single TDS payment for all the 5 installments?

        1. Date of Payment/Credit*
        (Date of Payment to the Transferor/Seller)
        2. Date of Tax Deduction

        (Since some of the TDS payment is due from last financial year)

        • Rohit Agarwal

          Hello Vivek,

          I think you missed my last reply. I am posting it again

          “Hello Vivek,

          Please find my comment below: –

          1. (Date of Payment to the Transferor/Seller) -> It is the date on which the payment is made to the seller of the property.
          2. Date of Tax Deduction* -> Date on which you have deducted the TDS of the seller.

          As the TDS is for 26QB and the TDS is due in different financial year, I suggest you to make separate payment rather than one. If it is in any other case such as TDS for contractor or TDS on Salary etc then you can make the single payment for a single financial year.”

  41. Rana Pratp Das

    Sir
    Suppose TDS payment due date is 7th Dec but we paid TDS on 8th Dec. I have to pay late interest for 2 month @1.5%. If 8th Dec is public holiday or Bank Holiday, I have not to be paid interest. These days some bank have 4 sunday holiday as wll as 2nd and 4th suturday also holiday. If 8th dec is Bank’ sunday holiday or 2nd suturday or 4th suturday, I have to pay interest or not.

    • Prateek Agarwal

      If holiday is on 8th Dec then surely the due date is 7th of Dec and therefore interest is to be paid.
      If holiday is on 7th Dec then in the absence of any specific circular for the due date of TDS deposit, in case the original due date falls on public or bank holiday, we can assume the next working day will be the due date. On the safer side I suggest you should assume the previous day as the due date because if the payment is made via Online Banking then this contentions cannot be said valid.

      There is a CBDT Circular for the same issue for the interest u/s 234B and 234C but no specific circular is issued for the interest u/s 201(1A).
      The CBDT Circular No.676 dated 14/01/1994 is as follows:-

      “..if the court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the court or office (or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any installments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961, would not be charged.”

  42. Hi,

    I am owning a under construction flat whose value is 52L. I am paying the builder through bank loan during different stages of construction. Till date i have not deducted any TDS on each loan disbursement to builder. Two more partial loan disbursement (around 7.5L) is pending from side to builder and i am planning to deduct TDS for next two installments.

    Here i would like to understand how should i calculate TDS penalty for my previous installments to builder and how to deposit the same (TDS + Penalty) to government?

    Should i calculate separately TDS penalty for each installment from the date of payment to till date?

    Will the TDS certificate (FORM 16B) shows TDS + Penalty amount or just the TDS amount which are supposed to be deducted for all previous payments to builder?

    Thanks,
    Jijesh

  43. Sir,

    I paid some 6 lac Rs as booking amount to builder for prelauch property in january 2014
    and now in october 2015 I am taking my money back due to non commencement of construction.
    in case if builder has paid service tax on receipt of my money in january 2014, is he eligible to apply refund of servic tax.
    as we are cancelling our deal and i as customer has not received any service from builder.

  44. Sir,

    I had booked flat in prelauch property Mumbai and paid some 6 lac amount to builder as booking amount in January 2014.
    due to some govt clearance reason the construction is still not started.
    so I cancelled my booking and demanded my money back.
    Builder is ready to pay the entire amount with interest of 8.6 % PA.
    when he gave me cheque he said he had deducted he is deducting 10 % TDS on interest amount.
    Interest was around 90 thousand.
    tell me in my case builder should deduct the TDS or not

    • Prateek Agarwal

      Builder should not deduct tds in such case.
      If he doesn’t agree on it, then you can claim such amount in income tax return.

      • thanx for reply prateek ji,

        if my income falls under 30 % slab. Am i stilll eligible to claim income tax refund in ITR.
        and should i ask builder to provide me TDS certificate. so that i can claim return.

        whether I have to pay income tax on this income as interest or I am exempted

        • Prateek Agarwal

          If there is income tax payable, then such tds will be deducted from such tax.
          You should ask for tds certificate from builder.
          This interest is considered as your income and thus taxable.

          • Sir,
            I am indian resident tax payer in 30 % slab. if I agree to furnish form 15 G to the builder, then also will he deduct TDS on such interest or he should give me the amount without deduction of TDS.

          • Prateek Agarwal

            Form 15G can be furnish only by persons who doesn’t have taxable income. So you are not eligible to furnish form 15G.

  45. Sashank Rawat

    dear sir,
    As request to you we have deduct the TDS on various date in july’15 but not paid in 7th Aug’15 we will pay the TDS on 21 Sep’15 so how many % on interest and also 2 or 3 month interest we will pay.
    please help

  46. Dear Sir,
    Our factory rent increase from April 2015 but confirmation recd on 31 Aug 2015. Then we entered increased rent from April 2015 to July 2015 (4 month) on 31/08/2015 and TDS deduct on increased Rent on 31/08/2015. then, shall we deposit the Intrerest ?
    We punch the Entry of increased Rent and TDS, Have we done this right or wrong.

    Pls Advice and Suggest me.

  47. Dear Sir,

    Our Company TDS on Interest accounted on 31.03.2015 . how to calculate TDS on Interest & Late payment.

  48. Dear sir,

    As request to you we have deduct the TDS on various date in july’15 but not paid in 7th Aug’15 we will pay the TDS on 08th Aug’15 so how many % on interest and also 1 or 2 month interest we will pay

    kindly advise me.

    • Prateek Agarwal

      Interest is payable @ 1.5% for two months. so total 3% interest is payable.

      • Dear sir,

        late payment only one days why we can pay the 2 month interest.

        • Prateek Agarwal

          yes this seems unfair but we can’t do anything.
          only we can do is paying TDS on time.

          • hello sir
            As request to you we have deduct the TDS on various date in june’15 but not paid in 7th july’15 we will pay the TDS on 4th aug’15 so how many % interest we’ll pay and and how manny month calculated .

          • Prateek Agarwal

            Interest will be paid for 3 months @ 1.5% per month

  49. when due date 7 th is sunday then i want payment mondal its actually 8th june 15 then interest was payable or not.

    • Prateek Agarwal

      In the absence of any specific circular for the due date of TDS deposit, in case the original due date falls on public or bank holiday, we can assume the next working day will be the due date. On the safer side I suggest you should assume the previous day as the due date because if the payment is made via Online Banking then this contentions cannot be said valid.

      There is a CBDT Circular for the same issue for the interest u/s 234B and 234C but no specific circular is issued for the interest u/s 201(1A).
      The CBDT Circular No.676 dated 14/01/1994 is as follows:-

      “..if the court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the court or office (or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any installments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961, would not be charged.”

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