04 May 2010
TDS deducted on March month and it will payble on or before 7th april so my query is suppose i m paying it on 05 may so int @1% pm should liable to payble but wht is period should considered for it whether from 7 th april to 5th may or from march to 5th may ?
04 May 2010
Int is to be paid after the due date is over, ie. from 8th apr.30th apr & from 1st may to 31st may, even for one day delay you have to pay 1%.
04 May 2010
Section 201(1A) is relevant for calculation of interest and is reproduced : -
5[(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct 6[the whole or any part of the tax] or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at 7[8[twelve] per cent per annum]on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid 9[and such interest shall be paid before furnishing 12[the statement] for each quarter in accordance with the provisions of sub-section (3) of section 200].]
A bare reading makes it amply clear that the interest shall be payable from the date on which the tax was deductible and not from the due date.
Further, a month shall be taken to be 30 days, in terms of General Clauses Act.
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