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Interest on tds

khyati (article) (56 Points)

30 December 2013

please tell me the calculation of interest on tds. specially months calculation, whether the deduction date month will be taken whole or daywise calculated.

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4 Replies

Amrin (Chartered Accountant) (215 Points)
Replied 30 December 2013

Interest will be calculated from date of deduction to the date of payment on monthly basis @ 1.5%. (1.5% X No.of months X TDS amount).

In other words :

When TDS is not paid by its due date, then interest should be charged from the date of "PAYMENT" and not from the date of "DUE DATE"

Also.. Even a part of month is taken as a FULL month.

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114230 Points)
Replied 30 December 2013

To know in details about how to calculate period of default and interest, see below link. The same is discussed at length.

/experts/tds-577865.asp

khyati (article) (56 Points)
Replied 30 December 2013

I have recd a notice from department and according to their calculation : Date of deduction 30/03/13 Date of deposit of challan 06/06/13 They calculated the months as 4 months and we talked to traces helpcentre they said march month will be taken full and also the june month , and the same calculation is in justification report.