21 November 2012
at one per cent. for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and
at one and one-half per cent. for every month or part of a month on the amount of such taxfrom the date on which such tax was deducted to the date on which such tax is actually paid, and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.
21 November 2012
1% is for non deduction of TDS from the income. 1.5% for non deposit of TDS even after deducting the TDS. For ex : TDs amount to be deducted rs.1000.then interest is 1% per month.example interest is for 5 months then Rs.5 is interest.
Incase of 1.5% the tds deducted and collected from the deductee is Rs.1000/ but not paid in to the account then interest is 1.5% ie Rs.15
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