Interest on late payment of tds

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mahender (Querist)
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31 December 2015 as we khow 7th of next month is the due date paying tds but i depposited the tax deducted in nov 2014 in dec 12, 2014 but the cpc has charges interest for 2 months @1.5% or should it be for 1 month

Ankur Singhal

Ankur Singhal (Expert)
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31 December 2015 If an assessee fails to deposit TDS within the time limit as mentioned above, then he is liable to pay interest penalty @ 1.5% for every month or part of the month from the date of deduction.
Pls note that here for calculation of interest the part of the month is taken as a full month.

Example: DAte of deduction is 25/11/2015 And due date of deposit of TDS is 07/12/2015.
But you deposit TDS on 08/12/2015 or later in december.
Then for interest calculation part month of november and december will be considered as two full months.

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