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Clearing of cheque or holiday is not considered for late TDS payment

Section 201(1A) of the income tax act says that if TDS is not paid on or before the due date, interest will be levied on the due amount with late fees per day. The tax amount should be credited to the government account with in due date. The cheque in the clearing is not the valid reason for late depositing of TDS amount and will not be considered. 

The main thing is that if you are paying the TDS amount with cheque, it should be deposited 3 or 4 days before the due date to avoid late fees and interest of the TDS. Because the cheque in clearing will be not be considered and will be treated as late payment.

There is also one more thing is if the last due date is holiday for any reason, the due date should be considered the date before the due date. Foe example if the last due date is 15 July and 15 July is government holiday for any reason, the due date should be considered 14 July as the last date to deposit TDS.

IT : To avoid levy of section 201(1A) interest, TDS has to be actually credited and paid to Central Government; delay due to time taken in clearance of cheques or Government holidays or due to any reasonable cause cannot be considered - [2012] 23 taxmann.com 174 (Agra - Trib.)
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