05 June 2015
Yes. Interest @ 1% per month or part thereof has to be paid for late deduction of TDS. Interest to be paid for the period from the date on which TDS was liable to be deducted till the date on which TDS was actually deducted.
Say TDS was liable to be deducted on 01.01.2015 but TDS was deducted on 01.02.2015 so in this case interest on late deduction of TDS @ 1% per month has to be paid for 2 months i.e., 2% of the TDS amount.