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

AI Summary

Interest Calculation Period Under Section 201: Interest Payable From Deduction Date to Actual Deposit Date, Monthly Basis A query was raised regarding the calculation period for interest under Section 201 of the Income Tax Act. The scenario involved tax deducted on March 31, 2009, with a due deposit date of May 31, 2009, and actual deposit in September 2009. The question was whether interest should be calculated from April or June 2009. The response clarified that interest is payable from the date of deduction until the actual deposit date, for every month or part thereof, as per Section 201(1A).