14 March 2009
interest is calculated @ 1% p.m. or part there of on amount of such tax from date on which such tax was deductible to the date on which tax is actually paid.
14 March 2009
1% per month or the part of month. eg if TDS for Febtuary is deposited after 7th March,in March then intt shall be 1%. If it is deposited in April then rate shall be 2%
14 March 2009
Hey, Interest on late deposit of TDS is 1% per month or a part thereof and that too is calculated from the date of deduction.
For example: If you have deducted TDS on 05.05.2008, you are supposed to deposit it with Govt. by 7th of June' 2008. But if you fail to deposit it by 7th of June and deposits the same on 10.06.08, then your interest calculation shall be as follows:
Period of interest: 06.05.08 to 10.06.08 Comprising one complete month & 4 extra days
Therefore, effective interest rate shall be 2%.
Hope you got your answer in right spirit. For further clarifications mail me at ca.reetika_goel@hotmail.com
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