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Interest on late payment of TDS

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)

26 September 2011

If TDS deducted on salary is not paid with in the due date, than for interest calculation purpose how to calculate for number days.

It will be @ 1.5% for one month or from due date to date of payment.

Regards

Dayananda

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6 Replies

C.A SHASHANK GOYAL (Chartered Accountant) (362 Points)
Replied 26 September 2011

Hi, for this you can refer to the section 201(1A) of income tax act .1961

CA RICHA BADALIA (CA,CS) (1682 Points)
Replied 26 September 2011

Interest from the date when tax deductible to actually deducted-1%

Interest from the date when tax actually deducted to tax actually paid-1.5%

3 Like

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 26 September 2011

I have refered and as per my understanding of section it is from due date to till date of payment. But most of pepole with whom i have discussed are telling it is for whole month. Hence need clarification.

valji (Accounts manager-MBA) (2150 Points)
Replied 26 September 2011

agree with richa

C.A. Sandeep Wawhal (Chartered Accountant PGDFM BCom.) (1823 Points)
Replied 26 September 2011

TDS on interest is calculated on monthly basis and not daily basis. If your payment is delay by 1 day you have to paid interest for 1 month @ 18% p.a. or 1.5% p.m.