Rate on short deduction & late payment ?????????

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Neha Agarwal (Querist)
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23 August 2014 Dear All,
For Financial Year 2009-2010, What was the rate for interest on Short Deduction? & Interest on short Payment???? & How many month of interest will be calculation on above ????

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 August 2014 W.e.f 01-07-2010

# From the date when TDS was deductible till date of actual deduction,rate of interest is 1% p.m.
# For delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.5% p.m

Prior to 01-07-2010

# From FY 2006-07 onwards for delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.0% p.m

Neha Agarwal

Neha Agarwal (Querist)
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23 August 2014 I found Late payment interest details by ITD through Justification report but I m confused how ITD calculated it below men:-

Tax deposited : 60164.00
Date of Deduction: 30-JUN-2009
Date of Deposit: 08-JUL-2009
Due date: 07-JUL-2009
Months of Default: 01
Late Payment Interest
till Date of Deposit of Tax: 602.00
Late Payment Interest from
Date of Deposit of Tax till
Date of Processing: 251.00

According to me Interest for 2 months should be calculated,as applicable for FY 13-14 & 14-15, When I am paying interest on Late payment due to delay in challan, thn why ITD calculated Late payment interest till the date of Data Processing??? Would I have to pay both the tax ( Late payment interest & Late payment Till processing date)????

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 August 2014 Have not heard anything like "late payment interest from date of deposit of Tax till date of processing."

We are not liable to pay any such interest.

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Neha Agarwal

Neha Agarwal (Querist)
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29 August 2014 I mentioned above details through Justification Report, downloaded on 26.08.2014 for financial year 09-10. I thought in FY09-10 there might have been a different calculation on interest.......

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 August 2014 To the best of my knowledge there was no such provision. The " late payment interest from date of deposit of Tax till date of processing" is not logical.

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