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Calculation of interest on tds

TDS 10907 views 2 replies

Sir 

how to calculate interst on tds when its not paid or not deducted in time , (tds 1% ) and bill is of 1/12/2012 , late me know interest cherged on bill amount or tds amt . sir pl give with example

Replies (2)

Say bill amount dated 01-12-2011  is Rs. 1,00,000 and TDS of Rs. 1000 is deducted on 22/02/2012, but it is deposited to on 19/03/2012. 

Then as per Sec 201(1A)

01-12-2011 to 22-02-2012 = Rs. 1000*.01*2months

                                     =Rs. 20

22-02-2012 to 19-03-2012 = Rs. 1000*0.015*2 months

                                    = Rs. 30

 

 

Sec 201(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 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,—

               (i)   at 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 deducted; and

             (ii)   at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,

and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.

sir i think that in first calculation it would be 3 months as from 1.12 to 22.2 is 2 months and 22 days???

 


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