TDS payment with interest

This query is : Resolved

Jayesh Jagetiya (Querist)
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31 December 2008 Dear Friends,
We have not paid the TDS of Nov, 2008, due date of which was 7th December, 2008.
Now we want to pay the same with one month interest. Now what is the last date for the same? 7th January, 2009 or 31st December, 2008?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 December 2008 If you are ready to pay 1% interest only,according to me,last date is 31st December,2008.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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31 December 2008
Interest paid @ i% will cover the month of December only. The provision with rule dealing with the interest calculation are given hereunder:

Charging of interest u/s 201(1A): The deductor is treated to'be 'assessee in default' in respect of the short deduction/non deduction of tax. Under Section 201(1A) he is liable to pay simple interest one per cent for every month or part of a month on the amount of tax in arrear from the date on which such tax was deductible to the date on which such tax is actually paid, to the credit of Central Govt, Charging of interest u/s 201(1A) is mandatory and there is no provision for its waiver.

Procedure for interest calculation: The calculation of interest is to be done as per Rule 119A and is summarised below :

(i) The period for which such interest is to be calculated is to be rounded off to a whole month or months and any fraction of month shall be deemed to be a full month and the interest shall be so calculated;

(ii) The amount of tax in respect of which interest is to be calculated is to be rounded off to nearest multiple of 100 ignoring any fraction of Rs. 100.

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