Interest on delay in payment of tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2012 Dear Sir,

Please tell me that what is the rate of Interest on delay in payment of TDS for the financial year 2010-11 and 2011-12 and what is the method of calculation of such interest.

swasti

swasti (Expert)
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18 April 2012 Prior to July 2010, the rate of interest on delayed payment of TDS was 1% p.m. and after 01st July 2010 it is 1.5% p.m.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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18 April 2012 Agree with expert. But it is 1.5% pm or part there of. The mode of calculation is as below:
Assume you deducted tax on 10th Jan but remitted on 9th jan i.e. after due date, then interest is for only one month. But if u have remitted TDS on 11th jan, then interest is for 2 months.
Assume TDS delayed is Rs. 1,000, then interest is Rs. 1,000 * 1.5% * 2 months = Rs. 30.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2012 thank you sir