Dear CA Club members,
Please let me know the calculation of the interest u/s 201 for the delay in the deposit of the tax deducted. I found that the IT department in the justification report downloaded from the TRACES is applying the interest from the month in which the payments are made(let us take eg. of sec. 194j) rather than the due date. i.e, if a tax is deducted in the month of june 2014 but failed to deposit it upto july 21, the penal interest must be from july8 to july 21 but the justification report says, calculations must be done from june 30 2014. With this several assesses are receiving the notices from the IT department. Please justify which of the above methods is correct with the necessary abstracts from the act.
CAclubindia
