Interest on late deposit of tds

This query is : Resolved

dheeraj kumar (Querist)
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02 September 2013 Sir

please tell interest liability in the below mentioned case
situation 1

tds deducted 31.3.2013 deposited 29.6.13
for how many months interest is payable at the rate of 1.5%.

situation 2

tds deducted 0n 25.04.2013 and deposited on 08.05.2013

interest for how many months payable and at what rate of interes

situation 3

tds deducted on 25.04.2013 and deposited on 05.06.2013

situation 4

tds deducted on 25.4.2013 and deposited on 08.06.2013

if possible do provide exact income tax rule regarding interest on late deposit of tds

pl reply point wise at the earlist

thanks & regards
dheeraj kumar

CA Abhi Pandey

CA Abhi Pandey (Expert)
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02 September 2013 Situation 1 : Interest for 3 months
Situation 2 : Interest for 1 month @ 1.5%
Situation 3 : Interest for 2 months @ 1.5%
Situation 4 : Interest for 2 months @ 1.5%

Further, TDS Deducted but not paid, interest rate would be @ 1.5% for the month or part of the month.
and TDS not deducted and not paid, interest rate would be @ 1% for the month or part of the month.

Sumit Grover

Sumit Grover (Expert)
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02 September 2013 Section 201(1A) of Income tax Act:
Period of delay is reckoned from the date of deduction till the date of payment of TDS & rate is 1.5 % p.m. of part of month.

Month means period of 30 days.

Case 1: months-4
Case 2: months-1
Case 3: months-2
Case 4: months-2

dheeraj kumar

dheeraj kumar (Querist)
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02 September 2013 Sir

i have received demand notice from income tax department in the case
tds deducted on 31.3.13 and tds deposit date is 29.6.2013

i had deposited tds with interest for 3 months
but income tax department is claiming interest for 4 months. they have issued notice for 1 month arrear

please tell whether income tax department is correct or not

Sumit Grover

Sumit Grover (Expert)
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02 September 2013 Total days shall be 91 days(including date of deduction as well as date of payment) which comes to 3 months & 1 day......hence, 4 months

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