Method of calculation of interest on tds

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Ajith Kumar K B (Querist)
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13 February 2014 Sir,

A proprietor leased a building on October 2013, and paying rent from 5th November 2013. I applied for TAN on January 2014 got confirmation mail from NSDL site on 14th January 2014. On February 2014 i paid TDS from november onwards (October + November + December + January). I wish to know is interest is applicable and please explain the calculation process.

Regards
Ajith

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 February 2014 yes the interest is applicable. 1% each for month or part of the month from date on which deduction should have been made to the date on which tax is deducted and 1.5% for each month or part of the month from the date on which tax is deducted to the date on which tax is deposited with the govt.

For eg, lets say payment to the landlord is made on 5 nov. due date for payment of tax is 7 dec. now if you have not deducted tax at all, then you need to compute interest at 1% for Nov, Dec, Jan and Feb ie 4%.