Hi Prateek,

there may be some lacuna in language of law....

I wud like to explain my stand by stating the following example

Suppose Tax is deducted on 28th Feb...

and the same is paid on 8th of March (i.e. after due date ...7th Mar)

So accordind to me Interest is payable only for the month of Mar (Part month)

and not Feb and Mar ...

Please correct me team, if i m wrong

Hi Pritam,

In that case you are taking the default from March because the tax was not deposited within the due date i.e. 7th.

Then it should have been considered from 7th and not 1st.

Plus, it is from the date of deduction, not from the succeeding day.

please check.

Thank you for reminding me......

I have checked the rules and provisions of the act....

First of all reply to ur 1st query that why is it not from 7th and why it is from 1st

"Interest is charged for the month or part of the month, therefore if amount is paid on or before 7th of Mar then no interest is charged and If amount is paid after 7th then Interest is payable for whole of the month."

Now considering my previous example, i wud like to ask a question to every one that following the langauge of law whether Interest is to charged  from 28.02 or 1.03 (i.e. for 2 months or 1 month).

I am very much aware that interest is not from succeeding day and it is from the day of actual deduction of tax.

But if we follow literal interpretation then everytime one defaults in each month then he will have to pay interest for 2 months or more than 2months.

Regards

Dear Pritam,

I am also speaking following the language of the law.

Just because the ACTUAL DATE OF DEDUCTION happens to be the last day of the month, doesn't mean you can get away with the interest liability using your interpretation. Of course, it hurts to pay another 1.5% for the last day of the month, but nevertheless it has to be paid. Thats the penalty one pays for defaulting.

Even in the default generated from NSDL website, it shows 2 months for 28.02 in case it is paid in March.

No offence, but try to take it in the spirit of the profession instead of getting offended.

With Warm Regards

calculate from 31st march at 1.5% pm