Dear Sir,
TDS for March-20 was paid on 02.05.2020. As per new rule Interest rate on tds is 0.75% per month. For March-20 we paid in 02.05.2020 now we need to pay 3 months interest 2.25% (Each month 0.75%).
If the above calculation is correct or not Requesting you to advise
Thanks & Regards,
Kiran Kumar
Interest on TDS for March 2020 remitted in May calculated correctly at reduced rate of 0.75% per month. A user inquired about the interest calculation on TDS paid for March 2020, which was remitted on May 2, 2020. The user calculated a 2.25% interest for three months at a rate of 0.75% per month. A respondent confirmed the calculation, explaining that the interest is levied at 1.5% per month, reduced to 0.75% due to a rule change, and the user correctly calculated the interest for three months. Another respondent noted that the TDS rate was reduced by 25% from May 14, 2020, to March 31, 2021. (AI Summary)
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