Interest on TDS

This query is : Resolved

Harjot (Querist)
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11 May 2011 In Case of delay in deposit of TDS whether the interest should be calculated on monthly basis or on day basis. For Example TDS is to be deposited by the 30th April 2011 on Rs. 10000/- deducted on 31.03.2011. Tell me what is the interest amount if TDS to be deposited on 12th May 2011.

Thanx & Regards

Reply me as soon as possible.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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11 May 2011 1.5% for 31.3.11 to 30.4.11
1.5 % for 1.5.11 to 12.5.11

CA Navin Jain

CA Navin Jain (Expert)
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11 May 2011 interest on tds is calculated on monthly basis, therefore you need to pay interest for Two month

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Harjot

Harjot (Querist)
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11 May 2011 Do u mean that the period of interest is not calculated from the due date of deposit of TDS which is 30th April 2011??????????

CA J KUMAR

CA J KUMAR (Expert)
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11 May 2011 interest is payable @ 1.5% per month or part of the month, so if there is delay of 2 month and 5 days then you have to pay interest for 3 month

CA Navin Jain

CA Navin Jain (Expert)
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11 May 2011 yes, interest on tds not calculated from due date,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 May 2011 https://www.caclubindia.com/experts/tds-577865.asp

Also see above link for details on calculation of interest on late deposit of TDS with example.