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mohit (Querist)

27 October 2012 If Tax Deducted on 31/03/2012 & Tax Deposited on 15/05/2012 then How many Months is Considered For Interest Calculation ?

CA Manish

CA Manish (Expert)

27 October 2012 30th April was the last date of payment for tax deducted in the month of March 12.

Therefore 1 month interest will be charged @1.5% P.m.

CA Harsh Jain

CA Harsh Jain (Expert)

27 October 2012 Dear mohit,
The due date of deposit of tds of 31.03.2012 is 30.04.2012,hence only 1 month interest will be charged if you deposit tds as on 15.05.2012.

V K Bajaj

V K Bajaj (Expert)

27 October 2012 @ Mr Manish and Harsh Jain

Please note that in this case interest will be charged for two months @ 1.5% per month.

No doubt the due date of deposit was 30th April but was actually deposited on 15th May so interest shall be calculated for both April and May.

@ Mr Mohit: Alternatively you can wait for communication from your TDS Officer to pay interest. TDS Ward/Circle keeps on checking all such defaults.

CA Manish

CA Manish (Expert)

27 October 2012 Sorry for the mistake in last reply.

Interest will be charged @ 1.5% for 3 months from the date it was deducted (31.03.20120 to the date it was deposited (15.05.2012). (Mar, Apr and May)

Text of Section 201(1A)(ii)

Interest at one and one-half per cent. 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, and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.”.