08 September 2013
I. Interest on late deduction and delayed deposit of TDS
As per income-tax , interest is payable under the following two circumstances:
Tax is not deducted , when it was deductible Tax once deducted, is not paid on or before due date..
Rate of interest
W.e.f 01-07-2010 From the date when TDS was deductible till date of actual deduction,rate of interest is 1% p.m.
For delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.5% p.m
If any person fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay as aforesaid.This penalty is imposable by Joint Commissioner.