Hello Friends,
I have a query in my mind, suppose i have deposited TDS of Rs. 1236 on 8th August 2009 for which due date is 7th August 2009, Now question is whether interest on late deposit of TDS will be calculated till current date or only for 1 month. Because interest is calculated for the month or anypart thereoff.
I have done audit the same in the month of November, 09, Whether interest will be calculated till novermber end i.e for 4 months or for 1 month i.e only for the delayed period.
Hello Dear,
As per the provisions of Sec 201 of the Income Tax Act 1961,
Interest shall be calculated from the date on which tax should be deposited to the date on which tax is actually deposited @ 1% p.m. or part there of.
So in ur case interest shall be calculated only for one month.
whether audit has been done in the month of Nov.
Kapil is correct. you need to pay only for month because u had made the TDS paymet on 8th Aug09.
CAclubindia
