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? Suggest with reagards to above with sections or case laws or notification etc

[Rama Krishana]

The language of section 201(1A) is plain and clear. In case of failure to pay tax which was deducted, Interest is payable from the date of deduction till the actual date of deposit for every month or part of the month.

AI Summary

Interest on delayed TDS accrues from the date of deduction until actual deposit, payable for each month or part. Interest under section 201(1A) is payable from the date tax was deducted until the date of actual deposit, computed for every month or part of a month; the interest accrues continuously between deduction and deposit irrespective of due dates.