Naresh Pandey (CA) (137 Points)
17 May 2012Dear CCI members,
I have a query regarding calculation of interest on late deposit of TDS. We deducted TDS in the month of Feb 2010 and Paid in the month of April 2010, so interest is charged for 2 months but at the time of payment we did not paid any interest. In this case, now we have to calculate interest assuming the interest amount for 2 months as principal amount and interest shall be calculated from Feb 2010 till date. What will be the interest rate in this case 1% pm or 1.5% per month??
Fauzia Afsar
(Partner)
(280 Points)
Replied 17 May 2012
Hi Naresh,
In your case interest will be charged @ 1.5% pm for every month or pat of month on the amount of tax, which has been deducted by you and not deposited to the government. .Thus, you have to pay interst @ 1.5% on the amount of TDS not deposited by you.
Fauzia Afsar
(Partner)
(280 Points)
Replied 17 May 2012
Hi Naresh,
In your case interest will be charged @ 1.5% pm for every month or pat of month on the amount of tax, which has been deducted by you and not deposited to the government. .Thus, you have to pay interst @ 1.5% on the amount of TDS not deposited by you.
Fauzia Afsar
(Partner)
(280 Points)
Replied 17 May 2012
Hi Naresh,
In your case interest will be charged @ 1.5% pm for every month or pat of month on the amount of tax, which has been deducted by you and not deposited to the government. .Thus, you have to pay interst @ 1.5% on the amount of TDS not deposited by you.
Varuna
(CA Student)
(102 Points)
Replied 17 May 2012
1.5% p.m or part thereof... since its delay in depositing tds before due date.. from 7th march till date of payment
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 17 May 2012
Not from 7th of March.
Since it is late payment, delay will be calculated from the date of deduction, not due date.
Hence from Feb to April = 3 months interest @ 1.5% has to be paid.
Regards
Prateek
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