Delay in tds deposited, interest calculation

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Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 If TDS is deducted on 23.01.2013 and deposited on 06.04.2013, then how many months interest delay @ 1.5% must be calculated

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

20 April 2015 three months interest will b charged

https://taxadda.com/income-tax/handbook/tds-payment-and-interest-on-late-payment/

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 From the date of deduction to the date of payment, so whether 4 months delay must be taken i.e. january, feb, march & April.

B'coz date of ded. is jan and date of payment is April and law says month or part of month

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

20 April 2015 Interest will be charged for 4 months. January, February, March & April. Interest on late deposit of TDS is calculated on Calender month basis.

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

20 April 2015 oops...yup its for four months ..thanks for the correction sanjay bhaiya...!!

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 Mr.Sanjay i have understood the month concept.
By this you mean to say there can never be one month delay.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

20 April 2015 yes it can never b... it wil b always for minimum two months...!!!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

20 April 2015 Yes dear. Even a days delay will cost you interest for two months i.e., 3%. Very harsh. It should be amended to be calculated like Interest on late deposit of Service Tax. But right now we have to deal with existing provisions.

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2015 Mr.Sanjay, TDS deducted Rs.5138 on 31-3-2015 and deposited on 2nd May 2015. What would be Interest amount due ?TDS Return filed within the due date.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

25 May 2015 Interest to be paid for three months @ 1.5% per month of TDS amount.

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2015 But Sir, We have received demand of Rs.154, which is 1.5% @ 2 months

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