Calculating interest on late pmt of tds

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Guest

Guest (Querist)

01 June 2012 Dear Sir / Mam,

I understand tht if there is a late pmt on TDS we need to pay 1.5% interest charge p.m..now if there was a pmt done on 3rd April 2012 & another pmt of 30th April 2012 & finally one pmt on 05th May 2012 then how much interest wud we charge on these pmts..

As per my understanding on the 1st pmt we shud charge interest for 3 months, for 2nd pmt interest shud b charged for 2 months & for the last pmt it shud be charged for 1 month, considering tht we wud be making the deposit of TDS amt in the bank before 7th June 2012..

Is it correct??

Ca Anand Dubey

Ca Anand Dubey (Expert)
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01 June 2012 for 1st and 2nd , apply 2 month interest and for last no interest

Guest

Guest (Querist)

01 June 2012 Dear Sir,

1st of all Thank you so much for the reply. But I am a bit confused now. I had read somewhere tht even if a few days have passed after 7th wich is the due date then also we need to charge the entire 1.5% for that month. So in the 1st scenario, where the pmt was done on 3rd April, 1st 1.5% will b charged coz we didnt make the pmt on 7th April, then the 2nd 1.5% would be charged coz we didnt make the pmt on 7th May & since we will be making the pmt of this TDS amt on or before 7th June, then wont there be another interest of 1.5% charged for the period 8th May - 6th June 2012.??