uma shankar rai (service) (29 Points)
19 February 2009Dear Sir
Pls guide me to Calculate interest for Delayed payment of TDS , i have deducted tds on each day of any month and depositing in 8 th of next month in this case whether interest will be for 2 month or 1 month
PLS Help with reference of Income tax act
uma shankar rai
LAXMIKANT JAIPURKAR
(Practicing Company Secretary/Tax Consult)
(403 Points)
Replied 19 February 2009
The period is to be counted from the due date of tds i.e. from 8th of the month.
In your case, the interest is to be calculated for one month only.
CA Ankur Mittal
(Assistant Manager @ Reliance Communicati)
(759 Points)
Replied 19 February 2009
interest will be claculated @ 1% per month
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 19 February 2009
Interest u/s 201(1A) is payable for delay in depositing TDS into Govt. treasury. It is payable @ 1% per month or part of the month for the period from the date on which tax was deductible to the date on which such tax is actually paid. Hence, in your case you have to pay interest for the period of 2 months. Please also note that interest is to be paid on delayed TDS which is to be rounded off to the nearest multiple of one hundred and for this purpose any fraction of one hundred rupees is to be ignored. (E.g. Say TDS is Rs.156/-, interest is to be paid on Rs.100/- by ignoring Rs.56/- being fraction) (Refer Rule 119A)
Sushant
(Accountant)
(28 Points)
Replied 13 March 2009
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