Interest calculation on late deposit of tds

Interest is to be paid from the date of deduction,here from 1st october upto 20th november i.e for 2 months where part of the month is considered as full month @ 1.5%pm

• For late deduction of Tax deduction at source

              period date from tax deductible to date of actual deduction

              rate 1 % per month or part thereof)

• For late deposit of TDS after deduction

             period :date from tax deducted and date of actual deposit

            rate 1.5 % per month or part thereof

So as per above you are liable to pay interest @ 1.5% per month for two months.

Dear All, My doubt is whether interest is calculated for the period of 7/11/2012 to 20/11/2012 only becoz of dated 07-11-2012 due date of deposit mandatory without interest and after 07-11-2012 to it apply to interest,so interest is paid only for 14 day's not to 2month And can any bady tel me why interest paid 2 month

As per section 201(1A)(ii), in case of late deposit after deduction of TDS the interest will be paid @ 1.5% for the month or the part of the month and  period will be "date from tax deducted (October 01,2012) till date of actual deposit (Nov 20, 2012)".

So as mentioned above you need to pay interest for 2 months @ 1.5% per month.

Originally posted by : Yogesh Kumar
	As per section 201(1A)(ii), in case of late deposit after deduction of TDS the interest will be paid @ 1.5% for the month or the part of the month and  period will be "date from tax deducted (October 01,2012) till date of actual deposit (Nov 20, 2012)". So as mentioned above you need to pay interest for 2 months @ 1.5% per month.

i agree with you..

The statement quoted by Mr. Yash Gokani is correct.

Interest liability would be for 2 months i.e. from the date of deduction till the date of payment.

DUE DATE OF TAX  IS ONLY MADE TO PAYMENT BUT IF CALCULATED THE INTEREST YOU HAVE TO FOLLOW TO DATE OF PAYMENT AMOUNT  TO TILL TAX DEPOSITED DATED.

 

SO INTEREST WILL BE START ON 01-10-2012 TO 20-11-2012

 

SO TOTAL 2 MONTH.