For example, if payment is due on April 1 and the payment is not made until April 11, a simple interest calculation will determine the amount of interest owed to the vendor for the late payment. Penalty interest . According to the Finance Minister, the payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. So, Please provide Interest Rate on Late Payment of TDS / TCS. But as per the rule, you don’t need to pay Rs 37,800 as of late fees. 5. In other words, the late filing fees shall be deposited before filing the TDS return. Deposit late payment interest @ 1.5% per month or part of the month from the date of deduction till date of deposit. Enter a date in the penalty interest calculator (e.g. You need to be the querist or approved CAclub expert to take part in this query . Plz go through it carefully. The amount of late fees shall not exceed the amount of TDS. TDS/TCS return cannot be filed without payment of late filing fees as discussed above. There is a start date, 5-day grace period before it is late and then and end date (in which the payment was received). 10,000 you need to pay Rs. It should be noted that Rs. Reply. This doesn't give you the compounded interest, which generally gets lower as … 30 November 2012 Interest rate is 1.5% per month. TDS on Interest : Section 194 A On 15.05.2020, Mr. Bean has started Fixed Deposit with SBI of Rs. 200 per day is not penalty but it is a late filing fee. Type =IPMT(B2, 1, B3, B1) into cell B4 and press ↵ Enter.Doing so will calculate the amount that you'll have to pay in interest for each period. will be eligible for the reduced rate of TDS. the day after the due date of the invoice) where calculation begins and the date when the amount will be paid. This is what I mean: John owes: $100 (due on the 1/1/2008) In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.. Interest @ 1.5% is liable to be paid from the date on which the TDS amount was deducted and not from the date the TDS payment … CA Siddhartha Bhardwaj (Expert) Follow. I'm creating a chart for a company to calculate late fees. Every month after the 5-day grace period, a late fee of 1.5% is accessed every month until payment is received. It will mature on 13 th August, and SBI has to pay interest to Mr. Bean and deduct TDS from the payment. Previous. thanks in advance. CA Siddhartha Bhardwaj. Next . Tds deducted in the month of march but part payment made up to 30 th April remaining in July how should I calculate interest u/s 201 for late payment please explain with an example . The penalty interest is an interest that the debtor is liable to pay when the payment is overdue and not paid by the time required in the loan agreement. Penalty under section 271H: The mentioned rate of reduction will be applicable from 14 May 2020 to 31 March 2021 and this measure will release liquidity worth Rs.50,000 crore. Interest on Late deposit fo TDS/TCS Liabilities. Thanking you. Alongside the late fees, you will have to pay interest calculated on the amount. Enter the interest payment formula. Since the amount has crossed the maximum TDS liabilities of Rs. admin says: February 19, 2016 at 1:03 pm I have explained in article for calculation. Click here to login now . 50,00,000 for 90 days, fetching interest at 8% per annum. 10,000 only as late fee. ... third party vendor received while filing the TDS statement through third party vendor does not mean that original TDS/TCS statement successfully filed at TIN-FC on time. 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