728x90 AdSpace

Download

INTEREST RATE ON LATE DEPOSIT OF TDS INCREASED

Advertisement
Under the existing provisions of section 201(1A) of the Act, a person is liable to pay simple interest at one per cent for every month or part of month in case of failure to deduct tax or payment of tax after deduction.
6 With a view to discourage the practice of delaying the deposit of tax after deduction, it is proposed to increase the rate of interest for non-payment of tax after deduction from the present one per cent to one and one-half per cent for every month or part of month.
This amendment is proposed to take effect from 1st July, 2010.

Related clause reproduced hereunder
42. In section 201 of the Income-tax Act, for sub-section (1A), the following sub-section shall be substituted with effect from the 1st day of July, 2010, namely:—
“(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 as required by or under this Act, he or it shall be liable to pay simple interest,—
(iat 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 taxfrom the date on which such tax was deducted 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.”.
Do not Copy/Paste on other website/blog/forum site,we may demand compensation from you.However ,You may Provide only link back to our site.
Service Tax Rate Chart Wef 01.06.2015 on all Services
INTEREST RATE ON LATE DEPOSIT OF TDS INCREASED Reviewed by RAJA BABU on 2/27/2010 Rating: 5 Under the existing provisions of section 201(1A) of the Act, a person is liable to pay simple interest at one per cent for every month or pa...