Interest on tds

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Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2011 Please guide me as to calculation of interest on late remittance of TDS. Scenario 1: TDS u/s94H (Rs. 120000) deducted between 22nd November - 30th november 2011 but remitted on 16th decemeber then interest will be Rs 1200/- right?
Scenario 2: TDS u/s94H (Rs 120000) deducted on 3rd november 2011 but remitted on 16th december then interest will be Rs 1200 or Rs 2400?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 December 2011 In both scenario you need to pay interest of Rs.3600

Interest will attract 1.50% per month or part of the month from the date of deduction so deduction on 22 Nov or 3rd november will not make any difference. it will come 2 month interest Nov & Dec =1.50x 2=3 % so Rs.3600

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