Interest on tds late payment (Income Tax)

This query is : Resolved

Lokesh Bazaj

( Author )
21 May 2012

If TDS is deducted on 30-04-2011 u/s 194J
and the payment of TDS is to be made on
24-05-2012.

Then interest @1.5% p.m will be calculated for

a) 14 months i.e April 2011 to May 2012
(taking 1 day as part of the month or thereof)

b) 13 months i.e May 2011 to May 2012 because due date for same was 07-05-2011.

Siddhartha Bhardwaj

( Expert )
21 May 2012

Interest is payable fro the due date of payment to the actual date of payment.

Accordingly, iterest shall be payable for the period 8th May, 2011 to 24th May, 2012.

Accordingly interest shall be payable for 13 months.

Lokesh Bazaj

( Author )
21 May 2012

But Sir the law says this:

at one and one-half per cent. for every month or part of a month
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on the amount of such taxfrom the date on which such tax was deducted to the date on which such tax is actually paid,
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and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.”.

Siddhartha Bhardwaj

( Expert )
21 May 2012

Yeah sorry, got a little confused.

Interest shall be payable from the date on which such tax was deducted to the date on which such tax is actually paid.

Accordingly period shall be 30.04.2011 to 24.05.2012, i.e., 14 months.