Interest on delayed payment of tds on professional & salary

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Metal communication Pvt Ltd (Querist)
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27 September 2012 TDS on Professional was deducted in the month of July 12 for which the due date of payment to authority was 07.08.12. and June 2012 salary was booked in July 2012 for which the due date of payment to authority was 07.08.12. We have not made payment of the same till date, we will pay the same on 29.09.12. Please let us know the calculation of interest thereon.

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HRIDAYNATH PATRA

HRIDAYNATH PATRA (Expert)
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28 September 2012 Interest for delay in payment of TDS is 1.5% pm or part thereof as per section 201(1A).

If the payment is not made within due date i.e. by 7th of next month, delay will be calculated from the date of actual TDS deduction.

For example, if deduction date is 04/06/12 and TDS paid on 29/09/12 delay is as follows:

From 04/06/12 to 03/07/12 - 1 month
From 04/07/12 to 03/08/12 - 1 month
From 04/08/12 to 03/09/12 - 1 month
From 04/09/12 to 29/09/12 - 26 days i.e. 1 month

So total interest would calculated for 4 months i.e. 6%.

Wish your query is answered properly. If you do have any query, you may send it to cahriday@icai.org also.

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