astha tiwari (article) (71 Points)
16 August 2013I want to know how will we calculate interest for late deposit of TDS when TDS was deducted on 15/04/2013 and deposited on 05/08/2013. I have calculated interest @ 4 months at 1.5%p.m. but according to the intimation by the department they are claiming for interest of 5 months. Is this right on their part..plzz reply..Thanks in advance.
Ankit
(CA, CS)
(3064 Points)
Replied 16 August 2013
Yes Aastha, it is right on their part. Had you paid the TDS before 7/5, there would be no interest for april. But, since you paid in Aug, interest will be payable for april-august
NAGASAI.K
(Article Assistant)
(193 Points)
Replied 16 August 2013
As per sec:201(1a) of Income tax act, in case of late deposit of tds , interest shall be levied @ 1.5% per month or part of the month
Interest should be calculated from the date of deduction to the date of deposit
In this case:
Date of deduction---15/4/2013
Date of deposit------5/8/2013
Period of interest-----5months
Rate of interest-------1.5% per month or part of the month
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
