Interest on tds

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CA Nitin Kothari (Querist)
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16 June 2010 If TDS is deducted on 31st march but it is not deposited till 31st may, however the same is deposited on 7th june then for how many months interest will be charged & whether it will be charged from 31st march or 31st may?? Reply soon thanx

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 June 2010 TDS interest is 1 % Per month or part of the month. your case to be treated 1 month delay need to calculate 1% interest

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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16 June 2010 AGREED ONLY IF BILL DATE IS 31ST MARCH 2010, AND TDS DEDUCTED ON 31ST MARCH ITSELF.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 June 2010 Section is 201(1A). Interest is to be calculated from the date on which tax was deductible.

March 31 -- 1 month delay
April -- 1 month delay
May -- 1 month delay
June 7 -- 1 month delay
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TOTAL -- 4 months delay
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Rate of interest is 1 % for every month or part of a month.

CA Nitin Kothari

CA Nitin Kothari (Querist)
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16 June 2010 i m confused as there are two viewa coming plz confirm & tell

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 June 2010 yes.Absolutly agreed With Mr.Chakrapani warrier. it is from the date of tax deducted or collected so in your case 4 months delay

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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16 June 2010 AGREED WITH CHAKRAPANI JI.

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