Hello professional freinds.
I know that 1.5% interest per month or part of the monthis charged for late payment of TDS. Kindly calculate the exact amount of interest on the below mentioned example:
The TDS amount is Rs 25,000 dated 21/07/2014, which needs to be deposited by 7th August 2014 but has not been deposited till today. How much interest amount be charged on this 25000 @ 1.5% if the TDS along with interest will be deposited by 4th Sept 2014?
I will be highly grateful for the help.
Assuming dat d bill date is 21/07/2014, as in case of late payment of TDs, interest has 2 be calculated from the bill date & upto to d date of payment.
So in ur case i had assumed d bill date is 21/7/2014
Interest will be calculated as follows -
25000*1.5%*3months = Rs 1125/-
You can pay Rs 1125/- till 30/09/2014.
@ sarvesh: When interest along with TDS will be paid on 4th Sept, wont interest be calculated on 2 months only?
25000*1.5%*2months=750?
The period of default starts from date of deducting TDS which is 21/07/2014 till the date of actual deposit which is 04/09/2014.
21/7/2014 to 20/08/2014= 1 month
21/08/2014 to 04/09/2014 = 1 month
So shouldn't interest be calculated only for 2 months? Kindly explain.
MONTH ALWAYS CALCULATE AS PER CALENDER...
You have to deposit late deduction interest @ 1.5% per month or part of the month from the date of payment / credit to deductee till date of deduction.
Procedure for calculating Late Deduction:
| Amount Paid / Credited(Rs.) | TDS Deducted(Rs.) | Interest Calculation | ||||
|---|---|---|---|---|---|---|
| Date of Payment(dd-mmm-yyyy) | Due Date of Deduction(dd-mmm-yyyy) | Date of Deduction(dd-mmm-yyyy) | Period of Delay in Months | Interest on Late Deduction U/S 201 (1A)(Rs.)(Col 2 * Col 6 * 1%) | ||
| 100000.00 | 10000.00 | 3-Mar-2012 | 3-Mar-2012 | 4-Mar-2012 | 1 | 100.00 |
| Total | 100.00 | |||||
Correct Calculation
No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012
10000*1.5%*1(Months) =100.00
Bro part of the month is ignored while calculating Interest on late payment of TDS. Thats y i mentioned u can pay the said amount till 30/09/2014. Suppose u going to pay the TDS in nxt month , it vl be calculated for 4 months & so on.
The interest will be calculated for 3 months-July, aug & sept.......
CAclubindia
