TDS non- deduction

TDS non- deduction

I booked an apartment (of worth more than 1 crore) at Gurgaon in June'2015 and made the first installment of 37.5 Lakhs on 29/05/2015 but somehow forgot to made the 1% TDS payment at that point of time. Now when I am preparing to make the second installment I realized that I never paid the TDS for that initial payment so far. Please advise how to rectify this issue and pay the TDS due.

Thanks & Regards,
Prandeep

Asked 6 years ago in Property Tax

Hi Prandeep,

You can deduct the earlier TDS now and pay it along with the interest.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

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Talk to Abhishek Dugar

Hey Abhishek, thank you for replying. 
Are you suggesting that I should now only pay only TDS and Interest and I don't have to pay any fee/penalty? Will I have any issues because of this in the future?
 
Can I simply use the below calculations to pay the TDS and interest now?

Installment Payment on 29/06/2015 = 37,50000

TDS payment made today (3/25/2018) = TDS (1% of 37,50000) + Interest (1% of TDS for 33 months)
                                                    = 37,500 + (1%*37500*33)
                                                    =37,500+12,375
                                                    = Rs. 49,875

Many thanks in advance for all your help.

Thanks & Regards,
Prandeep

Asked 6 years ago

Hi Pradeep,

Since you are now making the second instalment, my suggestion is that you make the tds payment now for both the instalments. However for the first installment you will need to add interest as well.

Regards,

Nikhil.

Nikhil Khanna

CA, Mumbai

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Hi Pradeep,

If TDS is not deducted by you then 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, will be levied.

When TDS is deducted but payment is made lately 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 will be levied.

Regards,

Nikhil.

Nikhil Khanna

CA, Mumbai

1429 Answers

19 Consultations

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