Carried forward to next FY: The TDS deposited can be carried forward to next FY. TCS payments for the month of Mar-2020 needs to be made within 30th April, 2020. Actual date on which TDS is deducted. 2000 + Rs. Therefore, both the due date for furnishing of TDS return for the months March to May 2020 as well as payment of the TDS so deduced to Government exchequer has been extended to 30 June 2020 and no interest implication shall arise for payment made till that date. Tax deducted at source (TDS) on income earned is something most salaried employees are familiar with. Interest already paid. Here’s Why You Must Make SIP Investment Your New Year Resolution, Posting of staff at Customs areas & collection of Cost Recovery Charges, Reg. However, on March 5, 2020, the CBDT has come out with a corrigendum to the circular issued in January 2020 explaining the correct method to calculate TDS. However, due to COVID-19 the due date for filing TDS return for Q4-2020 in Form 24Q(TDS- Salary) and 26Q(TDS-other than salary) has been extended to 30th June,2020. 10,000 u/s 80TTA. Like us on facebook Over a period of 19 years, Relyon with its "Saral" products has been striving to serve various industries to simplify the activities in Tax & efiling, Payroll & Accounts domain. 30,000 + Rs. Date on which TDS is required to be deducted* : Is this TDS is on purchase on Immovable property* : Amount of TDS which is required to be deducted. Hence, it is advisable for employer to file it return atleast by 15th June so thay can get form 16 from TRACES portal by 30th June. This benefit is available only if such TDS is remitted to the credit of government on or before 30.06.2020. Are you facing any problems to related with law? 4. Note 2: Monetary limit for TDS applicability should be considered while determining TDS liability. TDS Interest Calculator – Late Payment (Income Tax) ... March 20, 2020 April 8, 2020 Pankaj Patil 0. For eg – TDS deducted on 15th June 2016 is required to paid on or before 30th July 2016. Q-4, Tax Deducted on 20 th March, TDS deposited on 5 th May (due date was 30 th April) The period of 20 th March to 31 st March will be calculated as one month, 1 st April to 30 th April will be another month & from 1 st May to 5 th May will be treated as another one month. There is no change in the due date of payment of TDS for the month of March, 2020. This is based on the explanation given in the tax ordinance, which is subject to clarification. FY 2020-21 : Calculation of TDS on payment of Salary and Wages. 6. Tax Deducted on 20 th March, TDS deposited on 5 th May (due date was 30 th April) The period of 20 th March to 31 st March will be calculated as one month, 1 st April to 30 th April will be another month & from 1 st May to 5 th May will be treated as another one month. Whether excess TDS paid will be refunded or carried forward to next Financial Year? but salary paid on 3rd April 2020. For instance, under section 194I the TDS can be deducted as per the rent paid for previous months. SCSS Calculator SCSS Investment Rules: The interest earned is paid on the first working day of every quarter (April 1, July 1, October 1 & January 1) starting 2020. last working day of every quarter – March 31, June 30, September 30, December 31. TDS paid on 5th May 2020. 50,00,000, surcharge is applicable as per rules. The Income Tax Department NEVER asks for your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail.. Thanking you sir Due, to COVID-19 issues the TCS payment can be made by 30th April,2020.Late payment of TCS attracts the interest @0.75% per month or part of month. As per section 201(1A), interest for delay in payment of TDS should be paid before filing the TDS return. The government has not extended the due date for depositing TDS however, the interest rate has been reduced to 9%. If the sum remains unpaid after 30 June, the normal interest of 1.5% is chargeable. Actual date of making the TCS payment for the month ending March is 7th April ,2020 and filing the return for the same by 31st May, 2020. ; 5. I have a short deduction case of July 2019. Here is a look at the reduced rates of TDS and TCS on various non-salaried payments. TDSMAN June 23, 2020 December 2, 2020 No Comments on Interest on Late Deduction of TDS The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. My relative had to pay TDS on sale of property. For delayed deposit of TDS, interest has been reduced to 9 % from 18% for those where the TDS is due from 20.03.2020 to 29.06.2020. I have paid the TDS amount for march-20 in may-20 along with the interest @ 0.75% for 24Q & 26Q. Thus the total interest comes to Rs. Therefore, both the due date for furnishing of TDS return for the months March to May 2020 as well as payment of the TDS so deduced to Government exchequer has been extended to 30 June 2020 and no interest implication shall arise for payment made till that date. Delay in deposit of TDS will attract interest @0.75% per month or part of the month. What are the consequence of late payment of tax and late filing of returns during COVID-19? Interest will be calculated from the date of deduction to date of actual remittance. In order to submit a comment to this post, please write this code along with your comment: 14f4bb27dfa9900310af95ec3524a38d. TDS from the month of June to March 2020 – 10 X 40,000 X 7.5 % = Rs. Period of delay means period between due date and date on which tax is paid. When TDS Is Deducted On Savings Bank Interest . Individual, HUF, Firm, Co-operative, LA and Domestic company. Under the tab ‘Statement/Payment’ in main menu, from the given drop down select ‘Request for Refund’. Please reply asap. However, seeing the trend of past few years, the extension is inevitable. So there is no question of penalty. 7500 = 9500 However, if the brokerage amount of Rs. TDS on savings bank interest limit. For delayed deposit of TDS, interest has been reduced to 9 % from 18% for those where the TDS is due from 20.03.2020 to 29.06.2020. Decoding Direct Tax Vivad se Vishwas Bill, 2020, Section 35ABB – Deduction towards expenditure incurred for obtaining a licence for operating telecommunication services, Section 14A disallowance not sustainable if AO fails to records satisfaction about correctness of claim of assessee, No income tax on receipt of reimbursement of software license fees from Indian subsidiary, SC: HC can entertain writ against Sec 16(2) Order of Arbitrator only in exceptional cases, Gujarat HC grants regular bail to assessee arrested for offences punishable under Section 132(1)(a) of CGST Act, Join Detailed Online Certification Courses on GST. Interest Payable under Section 234 B: Calculation of Interest Payable u/s 234 C; Advance Tax Payable upto 15th June 2018 (15% of Total Tax Liability) Shortfall in Advance Tax payment: Interest Payable u/s 234 C on shortfall in tax payment upto 15th June of the Financial Year (No interest payable if tax paid is 12% or more of Total Tax Liability) TDS on savings bank interest limit. As per the gazetted notification issued by Govt. Thanks for ur efforts.. Payment to builder made on 17th march 2020. Sir, This is the TDS interest calculator which will help you in calculating interest on late deduction, late payment and late filing. This TDS calculator carries out following calculations for AY 2021-22 i.e. – Finance Risk Manager (FRM) Is The Course For You! Join our newsletter to stay updated on Taxation and Corporate Law. So deposit of TDS on foreign remittance is made as per the remittance made. Employees TDS and Form 16?. Non-resident Individuals The TDS interest rates for non … Legal action to recover is possible during tenancy. The decision was taken to provide more liquidity to the individuals by lowering the tax rates. The business deposits TDS to the government; Late filing fees and interest is paid Return is filed before completion of 1 year from the due date; Razorpay’s automated recipe The process of generating Form 24Q and filing TDS returns requires complex calculations. Is late fees of Rs. The present articles on all aspects are being represented nicely.Even layman can able to understand the concept of article and understand it and can well be implemented. Please let me know if the TDS deducted on 31/03/2020 and the same is deposited on 08/05/2020. Tax compliances for FY2019-20 Ideally interest should be charged for one month. Reduced rate not considered. Please clarify asap CA's - need your help You have made remittance in the month of May’20. Interest under Section 234B is 1% per month or part of the month for default in … Appreciate if you can clarify, Unlike Form 16A, the due date for Form 16 is not 15 days from the due date of filing TDS return.. The only way to avoid paying interest under Section 234C is to pay advance tax on time as per the scheduled dates provided by the Income Tax Department. If we deposit TDS on 30 MAY 2020 having Due date 30 April 2020 and deducted in Mar 20 Month. Please let me know brother, I deduct tds on salary on 30.4.20 but I deposited the same in 6.6.20.how much interest for late payment I will be paid on 6.6.20. The due date for payment in case of TDS on sale of immovable property under section 194IA and TDS from rent by Individual or HUF under section 194IB is 30 days from the end of the month. Warm Regards & Best Wishes, Since the due date for filing TDS returns is extended to 30/06/2020 – will Sec 234E applicable from 15/05/2020- I did not understand your response to this question . TDS is to be paid by 7th of the following month. However, interest for the month of Mar-20 and & April-20 will continue to be @1.5% and for the month of May-20 shall be @0.75%. 8,000 = Rs. Let me explain in details say for example if you have deducted TDS on 31/03/2020 and made remittance on 15/05/2020, interest will be calculated for Apr’20 and May’20. Since, all the due date which are fall between 20th March to 29th June got extended to 30th June. If TDS for the period of 20th of March 2020 to 29th of June 2020 is paid after 30th June 2020, is still 0.75% rate will be applicable for said period or need to pay flat at 1% or 1.5%? There is no change in the due date of payment of TDS for the month of March, 2020. The due date to Deposit TDS for the month of March is 30th April. TDS under section 194A can be deducted @10% on the interest calculated on outstanding loans. between 01st May,2020- 30th June,2020) will attract interest as following: Late filing of TDS return will attract late fees under section 234E @ Rs 200 per day for the period during which the default continues. Income Tax Calculator: Easily calculate your taxes online for Assessment Year 2021 - 22, FY 2020 - 21, FY 2019 - 20 & FY 2018 - 19 with Goodreturns Income Tax Calculator. A payment of Rs 10000 under section 194J can be used to adjust TDS paid under section 194C. 30,000 Therefore, total TDS on rent for the year 2020 will be Rs. Ans. What is the period for charging the interest 2or 3 months, please explain. In FY 2019-20 (AY 2020-21) the same has been increased to Rs. The Author can be approached at caanitabhadra@gmail.com TDSMAN June 23, 2020 December 2, 2020 No Comments on Interest on Late Deduction of TDS The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. Need to pay the interest urgently. Accordingly TDS return in FORM 27Q will be filed. Ans. For delayed Deposit of TDS, interest has been reduced to 9% (0.75% per month) from 18% (1.5% per month) for those where the TDS is due from 20th April 2020 to 30th June 2020. Thus, it is clear that whilst date of TDS filing which is 31st May (falls between 20 March 2020 – 29 June 2020)is extended to 30th June 2020, delay in deposit of TDS will be subject to interest @.75% for every month of delay. If the interest pain on deposit crosses threshold limit, TDS on interest paid on deposits will be applicable on the entire amount of interest and not on the exceeded amount alone. Note 1: Consider tax treaties before determining the rate of withholding tax under Section 195. Where there is an excess payment of TDS the same will be carried forward and can be utilised for future payment of TDS. Great article.. WHAT IS LAST DATE OF TDS DEDUCT PAYMENT OF MARCH 2020, APRIL-2020 AND MAY 2020 ???????? Dear Sir, instead of 12% p.a. All Rights Reserved. P.S: If you want to calculate TDS late interest, try our free tool – TDS interest rate calculator. Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East), TDS Compliances for the month of March-2020 during COVID-19. July 2020. what rate of withholding tax under section 194I the TDS can be used only for the of! Having due date for payment of March the LAST date of TDS for the month March 2020 ( of. Nro accounts: it seems you have made the payment, means filed the Form 26QB also is and! 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