The 7th of every month — and why the interest runs from the day you deducted, not the day it was due.
Tax you deduct in one month is deposited by the 7th of the next. There is one exception, and it is the one people miss: tax deducted in March is due on 30 April, not 7 April.
The interest rule here is harsher than it first appears, and it catches people who believe a few days' delay is a few days' interest.
TDS payment (challan) — miss it: 1.5% a month interest from the date you deducted, not the date it was due
TDS payment (March) — miss it: 1.5% a month interest from the date of deduction
If you deducted on 3 October, the due date is 7 November, and you pay on 10 November, interest is not charged for three days. It is charged at 1.5% for every month or part of a month from 3 October — the date of deduction — which in that example is two months.
On ₹1 lakh of TDS that is ₹3,000 for being three days late. Rounding up part months is what makes short delays expensive, and it is the single most common surprise in a TDS assessment.
Two different rates apply. Failing to deduct at all carries 1% a month from the date the tax should have been deducted until it is. Deducting and then paying late carries 1.5% a month from the date of deduction until it is deposited. The second is the common case.
The 7th of the month following deduction, for every month except March. Tax deducted in March is due by 30 April.
1.5% for every month or part of a month, counted from the date you deducted the tax rather than from the due date. A part month counts as a whole one.
Beyond interest, the expense can be disallowed in computing your own income, and prosecution is available to the department for deducting tax and not paying it over. It is treated considerably more seriously than a late return.
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Ask on WhatsAppStandard statutory dates, computed from today. Extensions notified by the CBDT or CBIC, ROC dates that follow your own AGM, and state-administered levies can all differ. General information, not advice on your position — confirm with us before you rely on a date that is close.
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