TDS Late Payment

Interst under Section 201(1A) is 1% and is payable from the date on which such tax was deductible to the date on which such tax is actually paid.

However this provision is amended w.e.f. 01/07/2010. Under the amended version, interest will be payable as follows:

1% from the date on which such tax was deductible to the date on which such tax is actually deducted.

1.5% from the date on which such tax was actually deducted to the date on which such tax is actually paid.

Refer para 142.2 of Direct Tax Ready Recknor by Dr. Vinod K Singhania.

The same queries was already discussed in this club on 05 June 2010

/forum/interest-on-late-filing-of-tds-86113.asp

agreed Interest will be for 3 months @ 1.5 % pm

Interest shall b payable for 59 days.

Tds of april month shall require to be deposited on 7th may, otherwise interest shall b charge @ 1% for month or part of month for period starting from 8th may till date of actual payment of tax. So, for u interest shall b of 59days i.e. 2% of TDS amount. May 24days, June 30days and july 5 days. If this days are 61 then interest shall b 3% bcoz 1% rate is for part of month also.

1.5% rate apply for TDS deducted in month of July and not deposit in time.

Dear Amit,

As per Section 201 part of the month is considered full month for the calculation on interest on TDS.

yaa, shudanshu i told same u read it.

3% for 3 months. 

3% for 3 months (May,June July). July also considered for calculating interest.

sir ple. give me one exp. for let paid for t.d.s.

For Exp.

If u deducted 1000 and the same u have not paid timely its 5th of the next month than your calculation will be for 3month Rs.1030 (1% per month interest) 1000+30 rate of interest has been increased 1 to 1.5%

Dharmendra

(Taxation Accountant)

TDS should be remiited along with interest at the rate of 4.5%  - as described below

         April - 1 % per month

        May - 1 % per month

         June - 1% per month

         July - 1.5 % per month  >> So total is 4.5%

Interest Should be calculated from actual date of deduction as per section 201, but not from Due date of Remiittance i.e. 7th May 2010. So interest should be paid from April to July (4 months)