Period for which Intrest to be calculated U/s 201

[Venkateswararao Sunkara]

Sir, Please tell us intrest period in the following example: Financial year 2008-09 Date of deduction of tax 31.03.2009 due date for deposit of tax for entries passed on 31.03.2009 - 31.05.2009 TDS deposited in the month of Sep-09 Should we calculate TDS from April-2009 or June -2009? Thanking you

[CAGOPALJI AGRAWAL]

It would be calculated for delayed period only.

[Venkateswararao Sunkara]

With reference to your reply please give us any reference section or case law or any circular or notification with your comments. Since most of us taken stand for calculation from the date of April month it self ( as per the example)

[Rama Krishana]

The provisions of section 201 are plain and clear, in case of delayed deposit of tds deducted earlier, interest is payable from the date of deduction.

AI Summary

Interest under section 201 accrues from the date of deduction when TDS deposit is delayed, not from the due date.
Interest liability for delayed TDS deposit runs from the date the tax was deducted; thus if tax was deducted at month-end and deposited later than prescribed, interest accrues from the date of deduction rather than from a later point.