Interest calculation on late payment of tds

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Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2011 INCASE WE HAVE TO DEDUCT TDS FOR PROFESSIONAL SERVICE RS. 10000 FOR TECHNICAL ASSISTANCE RS. 100000 AS A BILL AMOUNT ON DTD 15/4/2011 BUT WE COULD NOT DEPOSIT THIS TDS BEFORE DTD 07/05/2011 SO HOW TO CALCULATE INTEREST ON LATE PAYMENT OF TDS @ 18% INTEREST

WHAT IS THE EXCAT RULES FOR INTEREST CALCULATION FOR LATE PAYMENT OF TDS FROM F Y 2010-2011 PLEASE CLARIFY THIS RULES IN DETAIL

Yogesh Agarwal

Yogesh Agarwal (Expert)
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06 November 2011 There are two issues involve and the implication depends on the issue. The issue one is you were required to deduct tax and fail to deduct.. and issue two is you were required to deduct tax and you did so but fail to deposit the amount so deducted..

Now if yours is case one then the interest will be calculated at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted;

and if your case is two then the interest will be calculated at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,

Hope you are clear...

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