Interest on late deposit of TDS – 3 % for delay of one day

Interest on late deposit of TDS is applicable @ 1.5% per Month or part thereof.  The period for delay is taken from date of deduction to date of deposit. So in specific cases a delay of one day may lead to pay interest @ 3%.

Suppose:

TDS deducted on 01.08.2013,

In this case,  due date will be 07.09.2013

If we deposit tax on 08.09.2013, one day delay also., interest will be applicable for two months i.e., from the date of deduction  (in our example it is 01.08.2013) to date of  deposit (i.e., 08.09.2013) @ 1.5% per month (that will be equal to 3%).

So be aware of the due dates & provisions of the laws.

ITR-1	It is for the Individual assesses having the   incomes like salary/pension/House property(Excluding the brought forward losses from previous year)/other sources(excluding the income from lottery & winning from race horses).
ITR-2	It is for the Individual & HUFs not having the income from Business or Profession. The types of income is same as ITR-1, including Capital Gains. (If any clubbing of income, can also use this ITR)
ITR-3	For Individuals/HUFs being the partners in firms & not carrying out Business or Profession under any proprietorship.
ITR-4	For Individuals/HUFs having income from a proprietary Business or Profession.
ITR-4S	SUGAM- Presumptive Business Income Tax Return
ITR-5	For Firms, Association Of Persons(AOP), Body Of Individuals(BOI).
ITR-6	For Companies other than Companies claiming exemption under section-11 (Income from property held for charitable or religious purposes).
ITR-7	For persons including Companies required to furnish return under section 139(4A)/(4B)/(4C)/(4D).
ITR-8	Return for fringe benefit
ITR-V	Acknowledgement. Where the data of the return of income in forms saral-II transmitted electronically without digital signature.

Difference between TDS and TCS

TDS :-Tax deducted at source arises when we are making the PAYMENTS which are covered under the purview of TDS

Example :-Payment of salary above the AVERAGE limit (194B)

               Payment of professional charges (194J) etc.

Note :- At the time of TDS Payer has to pay lesser amount than the actual amount

TCS :- Tax collected source arises when we are dealing with the transactions which are covered under section 206C(1) of income tax act 1961

Example :-Sale of scrap,Sale of alcoholic liquor etc.

Note :-At the time of TCS seller is used to collect higher amount than the invoice amount

However in both the cases tax amount will be remitted in govt.account