Calculation of interest u/s 201(a)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2016 Dear All
I am going to pay TDS today as
On 12/11/2016
for the month of October however
TDS amount is Rs. 23689/- pls clarify
For how many days i would have to pay 1.5% interest on late payment.

Regards
Amit kumar

Sandeep Dharar

Sandeep Dharar (Expert)
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12 November 2016 Interest on TDS is payable @1.5 % for the deduction month, delay month and payment month. The due date for payment of TDS deducted in the month of Oct'16 is 7th of Nov'2016. So as per us case 2 months interest will b applicable i.e, October and November.

Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2016 Sir can you pls clarify why interest
Shall be levied of two month as per
my case the delay days is only 5 not
Two month

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Sandeep Dharar

Sandeep Dharar (Expert)
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12 November 2016 Yes, but if u had not paid tax within due date then that month's interest will also b counted. That's why interest will b charged for 2 months. If there is delay for 1 day only then also 2 month's TDS will b charged.

U may visit the following link to clear ur doubt:-

http://taxmasala.in/how-to-calculate-interest-on-late-payment-of-tds-us-200-1a/

Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2016 Sir if i pay this TDS amount as on 30/11/2016 even then only 2 month interest will be levied

Right....

Sandeep Dharar

Sandeep Dharar (Expert)
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15 November 2016 Yes upto Nov 30th 1.5% rate will b applicable.