Urgent- Interest on short deposit of TDS

CA Shyam Sunder Agarwal (CA) (103 Points)

01 July 2011  

Dear friends,

We have deducted TDS u/s 192 on 30th Apr'11 Rs 1,50,000/- and deposit the same on 07th May'11 Rs 1,00,000/- and balance on 08th May'11 Rs 50,000/-. On 1st July'11 (i.e. today) our auditor is saying we need to pay interest on Rs 50,000/- towards late paymnet of TDS. My question is how much of interest we need to pay today? whether it is

On Rs 50,000 for 1 Month @ 1.5% =Rs 750   or,

On Rs 50,000 for 1 Month @ 1.5%=Rs750    Plus     On Rs 750/- for 2 Month (June & July) @ 1.5% = Rs 23 Total Rs 773/-

Please give your valuable suggestion. Its Urgent.