TDS INTEREST

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aniket (Querist)
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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

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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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/-.

aniket

aniket (Querist)
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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

aniket

aniket (Querist)
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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

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Here's a clear explanation for calculating interest on late payment of TDS:

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### 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.

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### Your Case:

| Particulars | Details |
| -------------------- | ----------- |
| TDS amount (April) | Rs. 149,286 |
| Due date for payment | 07-May-2009 |
| Actual payment date | 15-May-2009 |

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### 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**.

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### 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**.

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### 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.

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### 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%.

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### 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 |

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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.

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**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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