int. of late payment

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rajeev khulbe (Querist)
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07 August 2010 sir int. of late payment of tds.supoose i want to deposit it date 9. than sir how much int. add in my amt.
ex. my tds for the month of july 5000, than sir plz tell me how much int. in my amt.
regards
rajiv

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 August 2010 you need to calculate the interest rate @ 1.50 permonth or part of month from the date of deduction to date of payment so you need to calculate 1.50% interest if you paid 9th instead of 7th

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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07 August 2010 As you have deducted tax but failed to deposit it within the due date, you have to pay interest @ 1.5% per month for delay in remittance.

Interest will be Rs. 5,000 X 1.5% = Rs. 75.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2010 Dear Ramesh Ji,

TDS deducted in month of july.

Deposited on 9th august.

As per law interest rate @ 1.50 per month or part of month from the date of deduction to date of payment. So why TDS should not be calculated for 2 months i.e. 1.5% for July and 1.5% for august.

Please clarify.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 August 2010 yes.Mr.Sanjay you are correct, thanks for correction

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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07 August 2010 Agreed...Thanks for the correction Mr. Sanjay.

While calculating period for interest on late deposit of TDS, period prescribed for making payment to the credit of Central government is not to be excluded.

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