payment on 31st march 2020 and deposit on 30th May. how many months interest to be deposited. please explain calculation.
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Quick Summary
This discussion clarifies the calculation of TDS interest when tax is deducted on 31st March and deposited on 30th May. The consensus is that interest should be calculated for two months: April and May. The conversation also touches upon the nuance of whether part of a month counts as a full month for interest calculation, with one perspective suggesting three months if deducted on the 13th March, and another stating that even one day counts, implying three months. It also briefly mentions different interest rates for different TDS errors.
Interest is at the rate of .75% per month from the date at which TDS was deducted to the actual date of deposit. since you have deducted tax at 31st march so i think for one day it will not be calculated as whole month meaning if tax is deducted on 13th march then interest need to be deposit for 3 months since it is last day according to me it will not be deemed as whole month and interest need to be deposit for 2 months i.e. april and may.
What is the meaning of part of the month, even one day it counts so three months. what is the error type whether tds deducted and not deposited or tds not deducted at all. there are different rated for different errors.
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