Interest on tds calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2012 Please explain me calculation of interest like my TDS deduction liability raise in september month and i deduct TDS in october and want to payment in december what will be the interest amount.

CA Roshan Jha

CA Roshan Jha (Expert)
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31 October 2012 Your interest on Tds liablity shall be as follow (Assuming Tds amount =10,000)

For failing to deduct tds:
Interest= Rs.10,000*1%* 2 months (sep & oct)

For Failure to pay tds:
Interest = Rs. 10,000 * 1.5%*3months (oct, nov, and dec)

october has come in both the calculations as part of the month is considered as full month.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2012 what will i do when I paid full amount to that party and there is no further dealing with him.

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