Tds
Querist : Anonymous
Querist : Anonymous
---
### 📌 **Facts Recap:**
* **Contractor's bill credited** in books on: **23rd January 2015**
* **TDS deducted** on: **25th January 2015**
---
### ✅ **Relevant Provision: Section 201(1A)** of the Income Tax Act
As per **Section 201(1A)**:
> If a person fails to deduct the whole or any part of the tax **at the time of credit** or **at the time of payment**, whichever is earlier, **interest is payable**.
### 💰 **Interest Applicability:**
* Interest @ **1% per month or part thereof** is payable **from the date on which tax was deductible** (i.e., **date of credit**) **to the date on which tax is actually deducted**.
---
### 📅 **In your case:**
* TDS was **deductible on 23-Jan-2015**
* TDS was **actually deducted on 25-Jan-2015**
* Delay = **2 days**, but **even a single day** falls under **"part of a month"**
➡️ Hence, **interest @ 1% for 1 month** is **payable** under **Section 201(1A)(i)**.
---
### ✅ **Summary:**
| Particular | Date |
| ---------------------- | -------------- |
| Entry (TDS deductible) | 23-Jan-2015 |
| TDS Deducted | 25-Jan-2015 |
| Interest Applicable | **Yes** |
| Interest Rate | 1% per month |
| Section | **201(1A)(i)** |
---
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