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Interest for non deduction of tds - section 201

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(Querist)
29 February 2016 hi everyone,
i paid 80,00,000 advance to a party in december 2015 but did not deducted tds. now (feb) as i got to know the fact i am deducting tds.
my question is whether interest for "NON DEDUCTION" of tds (1%) is charged monthly basis or daily basis (i.e whether part of the month considered as a month)
Because the section (201) dosen't say that part of the month will be counted as a month.
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Suresh Ramaswamy

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Suresh Ramaswamy (Expert)
29 February 2016 Interest payable on delayed payment is 1% for a month or part thereof, even though the section 201 is silent on this aspect. The I.T. Act 1961 has at no place provided for calculation of interest on daily basis - so why should it do so for section 201 only.

A delay of even one day results in interest payment for 2 months - since the calculation includes the month of deduction also.
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