Interest on tds

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This query is : Resolved

shoeb parwaiz (Querist)

04 September 2017 Dear All,

Date of payment is 04.05.2016
Date of tds deducted is 31.03.2017
Date of tds deposited is 04.09.2017

Could you please confirm how interest shall be calculated on above.

Regards

Shoeb

RAJA P M

RAJA P M (Expert)

04 September 2017 You ll be Calculate interest Rs. XXX (x) 10.5% (7months*1.5 = 10.5)

shoeb parwaiz

shoeb parwaiz (Querist)

04 September 2017 Dear Sir,

Thanks for the reply!

Could plz explain the calculation of 7 Months.

Regards

Shoeb

RAJA P M

RAJA P M (Expert)

04 September 2017 You are deduct TDS on 31.03.2017 (March) Payable date 30.04.17. In case you can paid on April you don't want pay interest on the Deducted amount. You not paid on April....
You deposited 04/09/2017. So, We can calculate March 2017 to Sep 2017 (7months)

shoeb parwaiz

shoeb parwaiz (Querist)

04 September 2017 Dear Sir,

Thanks for the reply!

What would be for the period of 04.05.2016 to 31.03.2017. We made payment on 04.05.2016 without deduction of TDS. Will interest @ 1% be applicable for the period 04.05.2016 to 31.03.2017 for late deduction of TDS.

Regards

Shoeb

Dibin Divyakumar

Dibin Divyakumar (Expert)

05 September 2017 Yes, u/s 201(1A)(i), Interest is payable @1% for every month or part there of from date on which tax is deductable to date on deduction (in your case May to Mar) Tax Amount * 11 Months *1%
201(1A)(ii), interest @ 1.5% for the every month or part there of from date of deduction to date of payment (Mar to Sep) Tax Amount *7 months * 1.5%

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