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tds query


umang gandhi

2014-02-06

sir,      i have same query my new client had recived bills from 1-4-12  but he has not paid tds till today in some of bills he has made payment after deducting tds but he had not deposited tds,he has recived tan no. in january -14, and it return of last year is also pending so how should i calculate tds, and if i m taking all the bills of 12-13 in which tds should be deduct in current accounting year then how much intrest will be charged or should i take in last year only if i m paying tds right now.

thank you

CA Pulkit Sharma

2014-02-07

Hi,

He deducted TDS without TAN number, so depositing and filing the returns was not possible.

In case he is an individual and tax audit was not applicable than TDS need not be deducted. However the TDS was deducted.

The best things you can do is:

All the Tds deducted before taking TAN should be returned back to clients.

In case you choose to not pay back the TDS but remit to government than you will have to pay the following amounts:

Interst for Late payment of TDS - Interest at 1.5% per month from the due date to date of payment.

Late filing fees of TDS returns - Rs.200 daily for each day of delay

To avoid the interest and penalty, best things would be paying back the amount deducted.

From 2014 you can deduct and pay the tax and also file the returns.

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Mukesh Jain CA

2014-02-07

Just a small correction the interest will be calculated from the date of deduction (Not due date) till the date of remittance.

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