Interest on TDS Deducted But not Paid

[guna ch]

Dear Sir,

 

Tds is Deducted on 20/01/2013, Rs.10,000/-, Due Date is 07/02/2013

 

But i unable to pay the amount on due date , i paid the TDS amount on 11/02/2013 with interest of Rs.20/-

(10,000 X 18%X 4days/365days= 20/-)

But one of my freinds said that i should calculate interest for one month

Whichever is correct either tds interest calculate on days basis or month basis

 

Kindly replay me.

Thanking You

 

 

[Sanjeev Sharma]

In accordance to Section 201(1A), if there is dely in payment of TDS after deduction, interest is payble at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.

In this case Date of Deduction -  20/01/2013 & Date of Deposit - 11/02/13 - It is 22days ,therefore interest is to be paid @ 1.5% for one month ( month or part of the month) i.e. RS 150.00

 

AI Summary

Interest on delayed TDS: month-or-part-month rule makes any part-month delay attract one-and-a-half percent monthly interest.
Interest on delayed TDS is chargeable under Section 201(1A) at one and one-half per cent for every month or part of a month from the date of deduction until actual payment. Any part of a calendar month is treated as a full month for computing interest, so a 22-day delay between deduction and deposit results in interest for one month on the deducted amount.