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sonu gupta (Querist)
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07 May 2011 suppose v hv to deduct the TDS on 31.1 and deposit it by 7.2. but v deduct the TDS on 31.3 and deposit it on 7.5. now interest for late deduct the tds will be from 31.1 to 31.3 and late deposit will be from 30.4 to 7.5 since our liability to deposit will arise only when we deduct TDS and due date in this case for deposit the Tds will be 30.4 .plz tell wether i m correct.or interest for late deposit will be from 31.3 to 7.5

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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07 May 2011 The liability in your case shall arise from the month of february. You shall be required to pay interest @ 1.5% p.m. for feb, mar, apr as well as may. i.e. four months.

sonu gupta

sonu gupta (Querist)
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07 May 2011 sir rate of interest for late deducting is 1%

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Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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07 May 2011 Actually I was under impression that both the rates have been changed. Thanks for updating me.

The impact shall be as below.

Interest @ 1% p.m. for Jan, Feb, Mar.
Interest @ 1.5% p.m. for Mar, Apr, May.

There may arise a doubt that we are paying double interest for the month of March. But this is what the Act is speaking in clear words.