29 February 2016
hi everyone, i paid 80,00,000 advance to a party in december 2015 but did not deducted tds. now (feb) as i got to know the fact i am deducting tds. my question is whether interest for "NON DEDUCTION" of tds (1%) is charged monthly basis or daily basis (i.e whether part of the month considered as a month) Because the section (201) dosen't say that part of the month will be counted as a month.
29 February 2016
Interest payable on delayed payment is 1% for a month or part thereof, even though the section 201 is silent on this aspect. The I.T. Act 1961 has at no place provided for calculation of interest on daily basis - so why should it do so for section 201 only.
A delay of even one day results in interest payment for 2 months - since the calculation includes the month of deduction also.
CAclubindia
