TDS INTEREST
This query is : Resolved
26 May 2009
Dear All
How to Calculate interst on TDS,
If my TDS payable for the month of April Rs 149286/- Due Date 07/05/2009
Paid on 15/05/2009
How to Calculate interst on TDS,
If my TDS payable for the month of April Rs 149286/- Due Date 07/05/2009
Paid on 15/05/2009
CA.Tarun Maheshwari
(Expert)
26 May 2009
You need to pay interest @1% per month or part of the month. In this case the interest liability shall be 1493/-, i.e 1% of 149286/-.
26 May 2009
one of the expert clarifies that
149286 R Off 149300
149300*2/100= 2986 (april and may for late payment)
Rs 2986/-
which answer is right
149286 R Off 149300
149300*2/100= 2986 (april and may for late payment)
Rs 2986/-
which answer is right
26 May 2009
if Tds has been paid late then interest will be applicable
from the date of deduction of TDS/date on which Tds is Deductible
To date of actual payment of TDS.
01.04.2009 to 01.05.09-One month.
02.05.2009 to 08.06.09-part of month =one month
from the date of deduction of TDS/date on which Tds is Deductible
To date of actual payment of TDS.
01.04.2009 to 01.05.09-One month.
02.05.2009 to 08.06.09-part of month =one month
27 July 2025
Here's a clear explanation for calculating interest on late payment of TDS:
---
### Key Points:
* **Interest on late payment of TDS is charged under Section 201(1A).**
* Interest rate is **1% per month or part of a month** on the amount of TDS **from the date on which TDS was deductible to the date of actual payment**.
* The interest is **calculated for each month or part of the month** of delay.
---
### Your Case:
| Particulars | Details |
| -------------------- | ----------- |
| TDS amount (April) | Rs. 149,286 |
| Due date for payment | 07-May-2009 |
| Actual payment date | 15-May-2009 |
---
### Step 1: Determine period of delay
* TDS was deductible on **01-April-2009** (assuming TDS deducted on salary/payment in April).
* Due date for deposit is **07-May-2009**.
* Actual payment made on **15-May-2009**.
---
### Step 2: Calculate interest period
* From **01-April-2009 to 07-May-2009** → Due date (no interest applicable before due date).
* From **08-May-2009 to 15-May-2009** → 8 days late → considered as **1 month or part of month**.
---
### Step 3: Calculate interest
* Interest rate = 1% per month or part month.
* Interest amount = 1% of Rs. 149,286 = Rs. 1,492.86 ≈ Rs. 1,493.
---
### What about 2% interest mentioned by other expert?
* The **2% interest applies when TDS is not deducted at all or deducted late**.
* Since TDS was deducted timely but paid late, only **1% interest applies** on the amount.
* Also, **interest is charged from the date TDS is deductible till actual payment date**, so here it is roughly **1 month delay**, so 1% interest applies, not 2%.
---
### Summary:
| Scenario | Interest Rate | Interest Calculation |
| ------------------------------ | ------------- | ------------------------------ |
| TDS deducted but paid late | 1% per month | Rs. 1,493 (approx for 1 month) |
| TDS not deducted/deducted late | 2% per month | Not applicable here |
---
If your TDS was due for April and paid after the due date by 8 days, **interest @1% for 1 month = Rs. 1,493 approx** is correct.
---
**Let me know if you want me to help calculate interest for multiple months or if the due date or payment date differs.**
---
### Key Points:
* **Interest on late payment of TDS is charged under Section 201(1A).**
* Interest rate is **1% per month or part of a month** on the amount of TDS **from the date on which TDS was deductible to the date of actual payment**.
* The interest is **calculated for each month or part of the month** of delay.
---
### Your Case:
| Particulars | Details |
| -------------------- | ----------- |
| TDS amount (April) | Rs. 149,286 |
| Due date for payment | 07-May-2009 |
| Actual payment date | 15-May-2009 |
---
### Step 1: Determine period of delay
* TDS was deductible on **01-April-2009** (assuming TDS deducted on salary/payment in April).
* Due date for deposit is **07-May-2009**.
* Actual payment made on **15-May-2009**.
---
### Step 2: Calculate interest period
* From **01-April-2009 to 07-May-2009** → Due date (no interest applicable before due date).
* From **08-May-2009 to 15-May-2009** → 8 days late → considered as **1 month or part of month**.
---
### Step 3: Calculate interest
* Interest rate = 1% per month or part month.
* Interest amount = 1% of Rs. 149,286 = Rs. 1,492.86 ≈ Rs. 1,493.
---
### What about 2% interest mentioned by other expert?
* The **2% interest applies when TDS is not deducted at all or deducted late**.
* Since TDS was deducted timely but paid late, only **1% interest applies** on the amount.
* Also, **interest is charged from the date TDS is deductible till actual payment date**, so here it is roughly **1 month delay**, so 1% interest applies, not 2%.
---
### Summary:
| Scenario | Interest Rate | Interest Calculation |
| ------------------------------ | ------------- | ------------------------------ |
| TDS deducted but paid late | 1% per month | Rs. 1,493 (approx for 1 month) |
| TDS not deducted/deducted late | 2% per month | Not applicable here |
---
If your TDS was due for April and paid after the due date by 8 days, **interest @1% for 1 month = Rs. 1,493 approx** is correct.
---
**Let me know if you want me to help calculate interest for multiple months or if the due date or payment date differs.**
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