PLease see the attached link and download the file. It will calculate the interest required for the specific period.
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 25 February 2012
PLease see the attached link and download the file. It will calculate the interest required for the specific period.
sameer
(accountant)
(30 Points)
Replied 27 February 2012
Dear all
I Thank & agreed with above all, But now a day defaults files available by NSDL which are along with interest calculation,
Which containing two column of interest, one for delay in depositing tds amount and another for Interest on Interest amount whereas already TDS deposited without interest,
Is this method of Calculating of interest on interest is correct?
please suggest under what section they are collecting interest on interest amount?
&
How do we show interest amount in the challan while making payment?
Kanwal_no1
(CA Practice )
(44 Points)
Replied 27 February 2012
Hi Ramya,
The Overall period is less that 3 months, and as far as I know ITD calculate interest at the higher rate for the whole month if two rates are applicable (and not on the basis of number of days for each period). In the present case they will certainly calculate interest @ 1.50% for the part which fell after 30.06.2011, and for the balance period interest will be calculated @ 1%. So Out of total 3 months delay, 1.50% will be for July portion and for the balance period (3 months Less 1 month), interest will be @ 1%. But in any case it would be quite useful if fresh default file is procured from ITD.
Regards
CA Kanwaljit Singh Dhunna
CA Kiran Sutrave
(CA)
(428 Points)
Replied 01 March 2012
Interest @ 1.5% per month for 3 months is to be calculated and paid since the Interest will be chargeable from the date of deduction of tax which is from 14-04-2010 and will be calculated on a monthly basis as follows -
1. 14-04-2010 to 13-05-2010 - 1 month;
2. 14-05-2010 to 13-06-2010 - 1 month; and
3. 14-06-2010 to 12-07-2010 - 1 month.
Interest is to be paid for a month or part thereof which means that even if there is delay for a single day then Interest on TDS will be chargeable for the entire month. It is not based on number of days of delays but months for which there is delay in payment of TDS.
In your case, even if TDS was paid on 15-06-2010 then also Interest is to be paid for 3 months.
Kanwal_no1
(CA Practice )
(44 Points)
Replied 02 March 2012
Dear Kiran Ji,
Why the Interest @ 1.50%, even when the rate applicable upto 30.06.2010 was 1% per month ?
Regards
CA Kanwaljit Singh Dhunna
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 02 March 2012
Dear All
All of you have to keep in mind the provisions of Rule 119A of Income-tax Rules, 1962 while calculating interest.
Best Wishes
Sathikonda
Manish
(Ca)
(30 Points)
Replied 09 March 2012
D/All,
i want to know that if tds is deducted on 14.4.10 and deposit on 12.7.10 then it is a case of tax actually ddeducted to date on which actually paid the int @ 1.5 is applicable then why 1% is applicable can u give resons why this @ 1% , plz corect me if am. I think interst will be levied for 3 months
CA VISHAL L KHATRI
(PRACTICING CA)
(123 Points)
Replied 12 March 2012
CA VISHAL L KHATRI
(PRACTICING CA)
(123 Points)
Replied 12 March 2012
@ manish only 1.5% ll come & its for 4 month not for 3 months evry part or full month considered as full month :)
Kanwal_no1
(CA Practice )
(44 Points)
Replied 12 March 2012
Dear Vishal,
You must read the act as a whole and not in parts. We should interpret different provisions of the law harmoniously and not separately. If the law is amended w.e.f. 01-07-2010, is it a fault of the assessee ? Should he be penalised for that ? Food for thought :)
Regards
CA Kanwaljit Singh Dhunna
SHAILAJA M0RE
(Director)
(21 Points)
Replied 14 May 2012
My company has been receiving notices U/s 200A for late payment of TDS. I have paid the interest amount as soon as the default email is received by me through mail from tin-nsdl. Still the dept is sending notice regarding interest payment till date of processing. How do I calculate the amount to be paid as interest from date of processing till date of actual payment of interest?
For eg: Date of deduction 1/3/12 Date of Deposit 20/3/12 Due date 7/3/12 Amt Rs.4000/-
Late payment int till date of deposit of Tax Rs.100/-
Late payment Interest from date of deposit of tax till date of processing (24/4/12) Rs.3/-
What will be late payment int from date of processing (24/4/12) till date of actual payment (14/5/12)
sony
(Accountant)
(21 Points)
Replied 25 June 2012
Dear Sir,
Suppose I have deducted TDS Rs. 1000 as on 23.01.2012 & the same is paid on Challan tender date on 04.04.2012 without paying interest & now I want to pay the interest part, so should I calculate interest @ 1.5% for 2 months i.e Rs.30 or 4 months as on today i.e. Rs 60/- or Rs.30/- + 30*1.5%*2 = Rs.31/-.
Please suggest me as I am confused.
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 25 June 2012
You have deducted tds 23.1.2012 and diposited on 04.04.2012 then you liable to pay interest for 4 month upto 04.4.12 i.e. from jan12 to april12.
Hence, interest liability will be Rs. 60.
Kanwal_no1
(CA Practice )
(44 Points)
Replied 25 June 2012
Dear Sony,
Interest will be calculated for 3 months.
23.01.2012-22.02.2012 - 1 Month
23.02.2012-22.03.2012 - 1 Month
23.03.2012-04.04.2012 - <1 Month treated as 1 Month
@ 1.50% for 3 months - 45 Rs.
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