Interest on TDS

1% per month or part month. so, it is 1% of 149286.

as per ur calculation

149286*1/100=1493/- 

Rs 1,493/-

one of the expert clarifies that

149286 R Off 149300

149300*2/100= 2986  (april and may for late payment)

Rs 2986/-

which answer is right

 

Why have you calculated interest for april and may ? it should be onl for one month

if Tds has been paid late then interest will be applicable
 

• from the date of deduction of TDS/date on which Tds is Deductible
• To date of actual payment of TDS.
•  
• 01.04.2009 to 01.05.09-One month.
• 02.05.2009 to 08.06.09-part of month =one month

 

Let me come back to your query, now as per the amendment of section 201 of the IT Act (Finance Act, 2007), the Interest rate is read as follows. " Twelve per cent Per annum" on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid. Going by the new amended provision, the interest liability can be explained as follows: you take the date on which tax deductible i.e payment date or crediting the party date Which ever is earlier, to the date on which tax is actually paid. That means "X" days you will arrive. Now the interest liability will be: TDS amount * 12% * "X" days/ 365. I am interpreting the law in the view of new amendement ( Finance Act 2007) as " Twelve Per Cent Per Annum" in the place of 1% pm or part month.