Tds interest clarification

TDS 461 views 3 replies

Whether the interest on TDS deducted is cumulative ?

eg: Tax deducted on due basis on 31-1-2013 Rs10000/- the amount is deposited on 8th february 2013. the interest rate is 1.5% or 1.5%+1% for two months. TRACES  issued notice for same cases at 2.5% are you agree with thier appoach?

Replies (3)

the interest will be for 2 months jan & feb (interest for a mnth or par thereof)

agreee with above

interest is to be charged only for february @ 1% as part of month if not paid within due date e.g 7 th feb


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