Interest on late TDS payments: month definition changes interest calculation, tribunals endorse a 30 day month over calendar month
Section 201(1A) imposes separate simple interest for late deduction and late payment; dispute centers on whether "month" means a British calendar month as used by TRACES/CPC TDS or a 30 day month as applied in several ITAT decisions. The document cites tribunal authorities and illustrative tables to demonstrate that the month definition materially changes the computed interest liability for both late deduction and late payment periods. (AI Summary)