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 ?
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 -------- Total -- 3 months ========
06 April 2011
It should be two months. Further there is not clarity in the section 201(1A) but i still go with the one which is beneficial to the assessee
10 July 2013
Section 201(1A) is not Clear. Because earlier It was month or part of month. means february month to be counted as one month. and calculating as per Mr. Jha is in indirect taxation for days basis.
but as per my understanding of line given in said section, it should be understood that 3 Months interest to be taken. in income tax calender month to be taken for interest calculation. (not days basis)
CAclubindia
