Calculation of interest on late payment of tds

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boopathi (Querist)

17 March 2015 I have downloaded Justification Report and got some confusion as below:-

As per justification report is….
Amount Paid / Credited :
Rs.69,822
TDS Deducted :
Rs.698
Date of Deduction(dd-mmm-yyyy) :
22-Jan-2013
Due Date for TDS Deposit(dd-mmm-yyyy) :
7-Feb-2013
Date of Deposit as Per OLTAS(dd-mmm-yyyy):
29-Sep-2013
Period of Delay in Months :
9
Interest on Late Payment U/S 201 (1A) :
Rs.81

How they arrive Rs.81/- as interest on late payment?
But, when we calculating interest is Rs.94
(Rs.698 x 1.5% x 9 = Rs.94/-)
How they arrive Rs.81?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

17 March 2015 There calculation is not correct. It will be Rs 94/-.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

17 March 2015 @ Sanjay bhaiya sorry but the said calculation is absolutely correct

For calculation of late interest,

The amount of tax, penalty or other sum in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred rupees and for this purpose any fraction of one hundred rupees shall be ignored and the amount so rounded off shall be deemed to be the amount in respect of which the interest is to be calculated.

i.e. the amount on which interst is to b calculated is 600

so 600*1.5*9=81

Message likes : 1 times

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

17 March 2015 Thank you Ankit I was not aware of this. But since it is to be rounded off to nearest multiple of 100 then why not 700 since the amount is Rs 698/-.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

17 March 2015 it has said clearly to round off to lower side.. any fraction should b ignored... As it has said clearly sir

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

17 March 2015 Thanks for corecting me. My reply now stands corrected in view of observation of Ankit. Very good reply Ankit. Keep it up.

boopathi

boopathi (Querist)

17 March 2015 Thank you very much Ankit Bohra ji & Sanjay Gupta Ji. Now, i checked and verified justification report with the help of excel formula
ROUNDDOWN("TDS Amount",-2) x 1.5% x "Default Months"

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