Delay in tds deposited, interest calculation

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Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 If TDS is deducted on 23.01.2013 and deposited on 06.04.2013, then how many months interest delay @ 1.5% must be calculated

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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20 April 2015 three months interest will b charged

http://taxadda.com/income-tax/handbook/tds-payment-and-interest-on-late-payment/

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 From the date of deduction to the date of payment, so whether 4 months delay must be taken i.e. january, feb, march & April.

B'coz date of ded. is jan and date of payment is April and law says month or part of month

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 April 2015 Interest will be charged for 4 months. January, February, March & April. Interest on late deposit of TDS is calculated on Calender month basis.

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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20 April 2015 oops...yup its for four months ..thanks for the correction sanjay bhaiya...!!

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 Mr.Sanjay i have understood the month concept.
By this you mean to say there can never be one month delay.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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20 April 2015 yes it can never b... it wil b always for minimum two months...!!!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 April 2015 Yes dear. Even a days delay will cost you interest for two months i.e., 3%. Very harsh. It should be amended to be calculated like Interest on late deposit of Service Tax. But right now we have to deal with existing provisions.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2015 Mr.Sanjay, TDS deducted Rs.5138 on 31-3-2015 and deposited on 2nd May 2015. What would be Interest amount due ?TDS Return filed within the due date.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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25 May 2015 Interest to be paid for three months @ 1.5% per month of TDS amount.

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2015 But Sir, We have received demand of Rs.154, which is 1.5% @ 2 months