Interest Rate for Delay TDS Payment

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Ramdinesh G (Querist)
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20 August 2010 What is the rate for Interest Rate for Delay TDS Payment?

Details:-
Date of Deduction # 4th May 2009
Date of Payment # 7th July 2009.

But interest was not deposited till date?

It what should I calculate Interest for Delay payment?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 August 2010

Up to 30.6.2010 -Interest rate 1 % per month or part of the month

from 1.7.2010= 1.50 % per month or part of the month

so your case total interest is = 14 +1.50= 15.50%

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 August 2010 Interest would be = 1 + 1 + 1 = 3

visit this link
https://www.caclubindia.com/articles/a-day-s-delay-in-tds-remittance-interest-upto-3--6580.asp

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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20 August 2010 Dear friends,

I also want to have a clarification as the person in the query is suggesting that the TDS was deposited late.

But it was deposited on 07/07/2009 i.e interest to be paid was 1 % each for may/June/July.

But the point is that TDS was deposited without the interest. So what will be the interest calculation , if to be paid now ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 August 2010 Thanks Mr.Subash for correction

Sorry my calculation has been taken on 7th July 2010,

Actual Interest is 3 % which(1+1+1) only

sorry again for 1st reply

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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20 August 2010 Its okay.... that Interest should be 3 of TDS amount, had it been paid alongwith the late payment of TDS.

But since the interest part was not being paid, will the interest be charged on the interest itself ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 August 2010 Interest payable will be 1+1+1.5=3.5% of TDS amount

Subhash ji interest will not be charged on interest.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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20 August 2010 Mr. Sanjay....

TDS paid in 2009 , not 2010.

So question of 1.5 % is not there ?

but as you said in the second line.. that interest on interest will not be charged, will your answer be the same considering the above (2009-----2010) ?