14 August 2012
If i have deducted tds on 31march and made remittance on 14 june, shd the interest be paid for 3 months or 4 months? should 31st march be excluded from the interest calculation?
15 August 2012
Interest starts from the date of deduction. even 1 day also treated as part of the month and counted as 1 month. so 4 month interest need to pay
16 August 2012
The Calculation of Interest done by the Income Tax Department follows the Law laid down Under Section 201(1A) of the Income tax Act 1961. Section 200(1A) currently says that we have to pay interest for late payment(For delay in number of months from when we were supposed to deposit the tax to the date of actually depositing the tax) & from the date we were supposed to deduct tax till the date of actually deducting the tax.
17 August 2012
If TDS deducted on the month of March, it can be paid upto 30th April without interest. If you remitted it on 12th June, interest is for 3 months @ 1.5%
18 August 2012
Thanks for the replies. I have the following representations :
1. Sec 201(1A) says interest is payable from the date of deduction and not the due date. so the moment remittance is delayed, due date for remittance has no relevance.
2. Month has no definition in IT act. Hence why cant we look into general clauses act, which defines month as 30 days. If we compute from 31-3 , it shall be 76 days i.e., 2 months and 16 days = 3 months . so we can pay interest only for 3 months right ? why should i consider 31-3 a day to be a month and pay interest for an additional month ?
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