Interest on late payment of tds.

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Pradip (Querist)

10 July 2013 Dear Experts
I hv received a default notice from IT Deptt. for late deposit of TDS. TDS deduction date was 30-04-2012 and due date of TDS deposit was 07-05-2012. I have deposited TDS on 16-05-2012 including 1.5% interest thereon (for one month delay deposit). But TDSCPC calculated 2 months default. Kindly help me whether I was correct or Deptt.'s demand is correct. If Deptt.'s calculation is incorrect then please let me know next process.

Thanks.
Pradip Pandey

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

11 July 2013 TDS CPC has interpreted the law in a different style. For the delay of 16 days 2 months interest is being charged. No body is opposing such provisions. Whether the department follows same principles while issuing the refunds ?
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Pradip

Pradip (Querist)

12 July 2013 Thanks Sir. Previously I had downloaded default report from TIN-NSDL Site where it was seen that Date of Deduction was 14-01-2011, Due Date 07-02-11 and deposit date 09-02-11 and they charged 1 month interest. In same statement Date of Deduction was 07-01-2011, Due Date 07-02-11 and deposit date 09-02-11 and they charged 2 months interest. I am unable to understand the calculations. Please help me to make grounds to approach department. Thanks