Interest on tds

dept is right, read the text of sec. 201(1A) of IT Act, 1961, it says in case of late pmt of tds payable......the interest will be calculated from the date of deduction till the dt of pmt (i.e.depostion)....i.e. in ur case 7/1/13 to 7/3/13..= 3 months....since assesse is making default by depositing tds late..simply means,.thereby dept is having revenue loss(opportunity cost to dept) bcoz of such late deposit...hence to counter such revenue loss & to prevent the assessee from making such default int. is charged from the dt of dedn to dt of deposit of tds.....