1) For tds amt 95519/- interest for 2 months @ 1.5 % from 8.5.14 to 28.6.14 = Rs 2866/-

2) For tds amt 161766 interest for 1 month @ 1.5 % from 30.5.14 to 28.6.14 = Rs. 2427/-

Interest to be calculated from the date of deduction to the date of payment for late payment.
 

IN 2nd case also, it would be for 2 months......May & june....

Show Cause notice for initiation of prosecution under section 276B of the Income Tax Act,

all india, if assese deposit interest for delay deposit and also paid penalty,  what is the answer of this prosecution,

Recuired answer what is the answer

If assese deposit interest for delay deposit and also paid penalty, why the prosecution u/s 276B.

 

Interest has to be paid for the period form the date of deduction to the date of deposit of such tax. In the given case both the deductions are made in May 2014, but tax is deposited in June 2014. So, you are required to pay interest for the month of deduction to the month of deposit. Thus have to pay for two months ( May and June) delay.

Interest to b paid for 1 month only. It's from date of deduction to date of payment. 30.5.14 to 29.6.14 month get's complete, but tds paid on 28.6.14 so interest to be levied for 1 month only.

Default period in both cases is 2 months and interest rate would be 1.5% p.m.