TaxTMI 
TaxTMI 
TaxTMI 
Int. on late deposite TDS
udit gupta
What is the Interest calculation of late deposit of TDS. Example : If We deduct amount on 26 August 2010 and deposite on 6th October 2010. Regards Narendra
Interest on Late TDS Deposit: 1% from Due Date to Deduction, 1.5% from Deduction to Payment Under Section 201(1A). A query was raised regarding the interest calculation for the late deposit of Tax Deducted at Source (TDS). The example given involved a deduction on August 26, 2010, with a deposit on October 6, 2010. The response explained that under Section 201(1A), the interest is calculated at 1% from the date the tax was deductible to the date it was deducted, and 1.5% from the date it was deducted to the date it was paid. This amendment has been effective since July 1, 2010. (AI Summary)