Interest on tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2012 Dear Sir,
please suggest me tds of april will be deposited on or before 7th may,but we have not deposit on due date & now we are depositing on 5th of july than interset would be cahrgable 2 mont or 3 month.

C.A Anshul Singhal

C.A Anshul Singhal (Expert)
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05 July 2012 INTEREST ON TDS IS 1.5% PER MONTH.

C.A Anshul Singhal

C.A Anshul Singhal (Expert)
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05 July 2012 TWO MONTH INTEREST
I ASSUME TDS HAS DEDUCTED ON OR AFTER 5 APRIL.
OTHERWISE THREE MONTH INTEREST.

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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05 July 2012 it will be 3 month interest.
beacuse as per sec 201(1A)
interest will be:
at 1.5% for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.
so if you have dedected tax before 5th April then interest will be of 4 months. like if it is 3rd April then 3Apr-3May, 3 may-3 Jun , 3 Jun- 3 Jul and 3 jul to 5 Jul
But if you have deducted TDS after 5th April then it will be 3 month interest like if it is 6 April then
6Apr-6 May, 6May-6 June, 6 June to 5 Jul

as stated above interest rate will be 1.5%