TDS Interest rate for late payment

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yogini (Querist)
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04 May 2010 TDS deducted on March month and it will payble on or before 7th april so my query is suppose i m paying it on 05 may so int @1% pm should liable to payble but wht is period should considered for it whether
from 7 th april to 5th may
or from march to 5th may ?

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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04 May 2010 pay int @1% pm or part of a month, so in your case 2% int on the amt of TDS

yogini

yogini (Querist)
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04 May 2010 Means for 2 Months i.e from march to may 2% right

Shyam Lal Naik

Shyam Lal Naik (Expert)
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04 May 2010 Interest is attracted from the date of deduction till date of payment. It is March to May.

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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04 May 2010 Int is to be paid after the due date is over, ie. from 8th apr.30th apr & from 1st may to 31st may, even for one day delay you have to pay 1%.

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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04 May 2010

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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04 May 2010

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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04 May 2010 AGREE WITH EXPERTS.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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04 May 2010 Section 201(1A) is relevant for calculation of interest and is reproduced : -

5[(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct 6[the whole or any part of the tax] or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at 7[8[twelve] per cent per annum]on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid 9[and such interest shall be paid before furnishing 12[the statement] for each quarter in accordance with the provisions of sub-section (3) of section 200].]

A bare reading makes it amply clear that the interest shall be payable from the date on which the tax was deductible and not from the due date.

Further, a month shall be taken to be 30 days, in terms of General Clauses Act.

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