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

 

 

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.