We have made provision for interest on 31st march, 2010 and accordingly tds should be paid on or before 31st may,2010. now, if such tds is paid on 30th sept,10 i.e. after due date, what will be the interest rate ?
is it 1% or 1.5% ?
how is it to be calculated ? (from june to july 1% and jylu to sept @ 1.5%)
29 September 2010
As per section 201(1A)(ii) of the Income Tax Act, rate is 1.1/2 % for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.
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