Interest calculation

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Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2014 what is major difference between interest calculated on monthly basis or yearly or per annum Basis.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 September 2014 well that will depend on whether the principal changes or not during the year, and whether interest is compounded or simple

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2014 nikil ji.
how to calculate interest under monthly basis Like interest on service tax on monthly basis and income tax monthly basis.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 September 2014 ok..that is simple. let say TDS to be deducted was Rs 100 on 1 April 2014. You deduct on 10 May 2014. Now interest rate is 1 % pm. So you will deduct at 1% pm for two months April and May. (each part of a month is counted as a whole month)

So interest payable shall be Rs 2.

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2014 but as per service tax how i will calculate.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 September 2014 read this http://servicetax.weebly.com/interest-calculation.html