26 November 2013
In my case, date of deduction is 30/10/2013 and Payment of TDS is 10/11/2013.. so 10 days only delayed. It should be treated as 1 month as per sec 201(1A)of Income Tax Act, 1961
As per above said Section, Interest payable on Late payment of TDS is "From the date, on which the tax was to be deductible/deducted, to the date of actual payment."
26 November 2013
"At one and one half percent for month or part of every month" clause is there in the provisions of Section 201(1A)(ii). . First Part of the month October Starts from 30.10 and ends on 31/10. . Second Part of the month Starts from the first day of Nov. till the tax is being paid .i.e. up to 10/11/2013. . This is a riddle or "Paheli". How 2 days can be converted into 2 months !!!! .
27 November 2013
Clarification may be reasonable or of whatever kind but these provisions are very unreasonable and cruel. . At the time of granting refund, similar provisions are to be inserted in the Act. So that the amount can reach to the real beneficiaries. .
CAclubindia
