Dear Friends
as per new budget.
Interest for failure to deduct tax - 1% per month, starting from the date on which such TDS was deductible to the date of actual deduction
Interest for failure to remit TDS - 1.5% per month, starting from date of deduction to date of depositing....
In such a case, it seems that we can simply avoid the higher rate of interest by deducting interest late..............
Why such a provision? It should have been the other way around.... See point 42...
CAclubindia
