Tds interest calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2014 Please anyone guide to me how to calculate the number of month in calculation of interest on late payment of TDS?
For instance if tds deducted on 31st october but tds deposited on 25th november then how many months delay should be considered?

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AVTAR SINGH

AVTAR SINGH (Expert)
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19 February 2014 For 2 months. Once TDS is deposited late, the interest for the month/part of month is charged @1.5% from the date of deduction till the date of deposit. Refer Section 201(1A)

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CA Parul Saxena

CA Parul Saxena (Expert)
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19 February 2014 Interest from 31st october to 25th november to be considered.these 25 days will be treated as 1 month as part of the month also to be considered a month. So interest to be calculated for a month

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Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2014 Thanks for your information Mr. Avtar Singh Sir, but i want to know that how the months to be calculated?

AVTAR SINGH

AVTAR SINGH (Expert)
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19 February 2014 As per Rule 119A(b), where the interest is to be calculated for every month or part of a month comprised in a period, any fraction of a month shall be deemed to be a full month and the interest shall be so calculated. Month here means not 30 days but English Calendar Month.

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2014 Thanks for the information sir.