Interest on late payment of TDS

TDS / TCS 3337 views 6 replies

If TDS deducted on salary is not paid with in the due date, than for interest calculation purpose how to calculate for number days.

It will be  @ 1.5% for one month or from due date to date of payment.

Regards

Dayananda

 

Replies (6)
Hi, for this you can refer to the section 201(1A) of income tax act .1961

Interest from the date when tax deductible to actually deducted-1%

Interest from the date when tax actually deducted to tax actually paid-1.5%

I have refered and as per my understanding of section it is from due date to till date of payment. But most of pepole with whom i have discussed are telling it is for whole month. Hence need clarification.

agree with richa

TDS on interest is calculated on monthly basis and not daily basis. If your payment is delay by 1 day you have to paid interest for 1 month @ 18% p.a. or 1.5% p.m.

Earlier Rate of interest was 1%..

Now Rate of interest is 1.5% per month...

If delay of one day,then interest of whole month is charged...

Days is calculated from the day,on which TDS is to be deposited....

Right said avobe,u can refer sec 201(1A)....


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