This is with regards to the TDS interest on late payment. We have received a TDS justification report and their by demanding the interest on late payment, as per the statement the delay of payment for 2 (TWO) days which is 9th June instead of 7th June, so the interest on late payment to be for 2 days.
But as per the notice departments demands for 2 months interest.
Kindly advice on this matter.
Dear Livin,
As per income tax law, for interest on late payment of TDS, any fraction of month will be considered as full month. So delay of even 1 day will also be constituted as whole month.
Further period will start from the date TDS ought to be deducted ie in your case may.
So you have to pay interest for 2 months.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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