Interest rate for non deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2015 interest rate for non deduction of TDS
at the time of making advance payment
OR
At the time of making credit to the books

whether 1 % Interest rate applicable for non deduction of TDS.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 June 2015 Yes. Interest @ 1% per month or part thereof has to be paid for late deduction of TDS. Interest to be paid for the period from the date on which TDS was liable to be deducted till the date on which TDS was actually deducted.

Say TDS was liable to be deducted on 01.01.2015 but TDS was deducted on 01.02.2015 so in this case interest on late deduction of TDS @ 1% per month has to be paid for 2 months i.e., 2% of the TDS amount.