Calculation Of Interest On Late Payment Of T.D.S. ?

what is the rate of interest on late payment of TDS

what is the rate of interest on late payment  of TDS

Hi suppose if i have made a journal entry for deduction in the month of April 07 and i have not paid till June 2008 what will be the impact.   Even in that case also the Interest rate should not exceed 12%.

Pls clarify

hI........

COUNT THE MONTH OF DELAY FROM THE BILL / INVOCIE DATE TILL PAYMENT DAY....

SUPPOSE FOR UR IST BILL...... I.E.  7TH OF APRIL,  IF YOU DEPOSIT THE TDS IN 18 TH JUNE .THEN     FROM 7 TH APRIL -7 MAY  - 1 MONTH & 8 MAY TO 7 JUNE - 2 MONTH AND FROM 8TH JUNE TO 18 TH JUNE AGAIN 1 MONTH .......SO TOTAL  3  MONTH DELAY.......... REM...NO FRACTION OF MONTH IS FOLLOWED...

HOPE THIS MIGHT HELP U.

THANKS

Hi ramakrishna

It is not from April 07 to June 07.  It is from April 2007 to June 2008.

whether interest will be for 15 months or 12 months.

Hi Vinoth

Interest @ 12% per annum  or 1% per month is charged in case of late deposition of TDS.

So you can easily calculate it for any number of months.

from April 07 to June 2008 : Interest will be @ 1% p.m. for 14 months (as you are required to deposit the TDS by 7th of May 07 so interest is calculated not from the date of deduction of TDS but from the next date of default) or you can say that the interest is 14% for the whole period.

Regards

Sumit Aggarwal

9971444888

Dear vinoth kumar

I know that he has not depsoited till now...... but i was correcting the method for period calculation as provided by MR. Nagraju

.... Reagrding the issue of rate of interest , it is no where return that intt. will be payable only upto 12% ...u read the section 201[(1A) 42Without 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 43[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 44[one per cent for every month or part of a month] 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 [and such interest shall be paid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3) of section 200].]

I have masharba's ready recknor where he has written that formula for intt. calculation = 12% pa. x amount of such tax x " specified period, from the date on which such tax was deductible to the adte on whichsuch tax is actually paid "

Only u see that the intt. will not be higher than the actual TDS amount.

 Thanks

Dear Sir

Pls guide me to Calculate interest for Delayed payment of TDS , i have deducted tds on each day of any month and depositing in 8 th of next month in this case whether interest will be for 2 month or 1 month

PLS  Help with reference of Income tax act

GAYANAND JHA

Is the rate of Interest is different for TDS on Provision that is on 31st March 

I have deducted TDS on Contractor for a Transporter @ 2.06% on Rs. 275800.00 amounting Rs, 5681.00 in September 2007, but not paid the same, can u plz tell me the interest rate for late payment