TDS Interest % for March-20

[kiran kumar]

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

AI Summary

TDS interest rule: reduced monthly interest accrues from date of deduction until remittance of tax.
Under section 201 interest on TDS runs from the date of deduction to the date of remittance and is computed for every month or part of a month. A temporary reduction in the monthly interest rate applies for a specified period; where TDS for March was remitted on 2 May, interest is payable for the intervening months or parts thereof between deduction and actual remittance.