15 November 2010
Yes. Say you deducted TDS on 7th oct. Due date is 7th Nov. If you pay on 8th Nov interest will be 3% as from date of deduction to date of payment it is more than 1 month. If the same RDS was deducted on say 9th of Oct interest will be 1.5% as on date of payment (i.e. 8th Nov) it is 1 month. bcoz sir late pmt . of tds int. will be 1.50% than what is the means of it
15 November 2010
Rate of Interest is 1.5% p.m. If i month then 1.5%. If more than 1 month even by a day for that single day further interest of 1.5% will be payable.
15 November 2010
Interest payable for the entire month even for a days delay and interest to be calculated based on monthly basis as mentioned in the query.
15 November 2010
ROI : at 1% 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 1.5% for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,
Suppose tax was deducted on 5th August 2010. Therefore the due date for remittance of such TDS is 7th September 2010. Now if the assessee fails to pay the remittance on 7th and pays on 8th of September, he will be paying 3% interest thereon. As the condition said interest is charged from the day TDS was collected and any fraction for month will be taken as a full month. So, 1.5 + 1.5 =3% interest!!
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