Interest calculation on late payment of TDS (Income Tax)

This query is : Resolved

M N Jain

( Author )
06 April 2011

Dear Friends

Please resolve my below doubt.

Suppose I made a payment u/s 194C on 28/Feb/2011 and tds has also been deducted on 28/Feb/2011. But i deposited this tds to the govt. treasury on 02/April/2011. Now my query is that interest @ 1.5% for late deposit u/s 201(1A) will be levied for how many months ?

Regards

M N Jain

B.Chackrapani Warrier

( Expert )
06 April 2011

Three months interest has to be paid. Calculation ,as per my understanding is as follows:-
28/2/2011 -- 1 month
1 to 31/3/2011 -- 1 month
1 to 2/4/2011 -- 1 month
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Total -- 3 months
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CMA. Subhash Kumar Jha

( Expert )
06 April 2011

from 28/Feb/2011 to 27/Mar/2011 : 1 Month
28/Mar/2011 to 02/Apr/2011 : 1 Month

So it will be 2 month.

CMA. Subhash Kumar Jha

( Expert )
06 April 2011

Interest from 01.07.2010

For late deposit of TDS after deduction (period :date from tax deducted and date of actual deposit)(rate 1.5 % per month or part thereof)

Here the default period is calculated from date of deduction to actual date of deposit.
So the calculation is from date to date...

M N Jain

( Author )
06 April 2011

My doubt is still open since my confusion is also between two months or three months ?

I am not able to reach at a concrete decision as to whether interest should be charged for two months or thre months ?

May i have some more views ?

Regards
M N Jain