Interest calculatin of tds

This query is : Resolved

Ramsharan Patidar (Querist)
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01 May 2015 i deduct TDS on interest (u/s 194A) Rs. 7000/- as on date 31/03/2015 but i not deposit TDS till date if i am deposit challan today or tomorrow how can interest calculation how much dealy month

CA Anshu Agarwal

CA Anshu Agarwal (Expert)
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01 May 2015 you shall be required to deposit the TDS including interest @ 1.5% per month or part thereof. The calculation of interest shall start from date of deduction of TDS till date of deposit of TDS. (refer to Section 201(1A)(ii) of Income Tax Act)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 May 2015 It is 1.50% per month for 3 months i.e for March, April and May. One month interest payable for one day delay in a month.

CA Anshu Agarwal

CA Anshu Agarwal (Expert)
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01 May 2015 it shall be interest @ 1.5% for 2 months if you pay tds upto 30th may. Because delay in tds shall be counted from date of deduction i.e. 31st march in your case.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 May 2015 It is 3 months dear part of the month will counted as one month.

CA Anshu Agarwal

CA Anshu Agarwal (Expert)
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01 May 2015 in my opinion, months shall be counted from date of deduction to date of deposit. If you pay the tax on 01-05-2015, delay in deposit of tax is one month and one day. So one month is complete one month and one day being part of month shall be counted as one month. in this way total interest payable should be for two months and not for three months.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 May 2015 Your opinion is not as per the provisions on income tax Act.
The delay calculation as per the provisions of the Act is:
31-03-2015 1 month delay.
April 2015 1 month delay.
May 2015 1 month delay.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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01 May 2015 yes agreed with seetharaman ji

it wil b for three months dear

interest wil b charged from the date of deduction to the date of deposition ...

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