NAGASAI.K (Article Assistant) (193 Points)
23 August 2013Hi,dear experts
I have a query on Calculation of interest on TDS:
Interest is to be calculated from the date of deduction to the date of deposit at the rate of 1.5% per month or part of the month.
my query is meaning of part of the month
for ex: tds deducted on 24/8/2013 and deposited on 12/9/2013
for how many months i have to calculate tds whether 1 month or 2months or 19 days
please clarify my doubt ...................
NAGASAI.K
(Article Assistant)
(193 Points)
Replied 23 August 2013
Sir please provide me the meaning of part of the month also
Aman
(Finance Professional)
(604 Points)
Replied 23 August 2013
part of the month means even the 1 day of a month will be considered as full month....
in your example tds deducted in august but deposited in september after 7th september so the interest will be calculated for two month...for august & september @ 1.5% p.m.
S.R.Associates
(Tax & Investment Consultants)
(115 Points)
Replied 23 August 2013
Totally agree with Aman.
Part of the month means even one day late will be treated as one month late.
In your case you have to pay interest for two months.
S.R.Associates
9685595760
Manikanth
(Chartered Accountant)
(342 Points)
Replied 23 August 2013
One month of delay in ur case, not 2 months.
Because, Interest will be calculated from the date of deduction to the date of deposit at the rate of 1.5% per month or part of the month.
As u said,
Date of Deduction is 24.08.2013
Date of Deposit is 12.09.2013
So, the period from 24.08.2013 to 24.09.2013 is considered as One month.
In ur case the date of deposit is 12.09.2013 which is less than the 24.09.2013. It is a part of the month which is considered as Full month. So, the Interest liability attracts for 1 month
Ganeshbabu K
(Audit and Tax Advisory)
(48564 Points)
Replied 24 August 2013
Refer section 201(1A)
interest applicable for 2 months
Dheeraj Nailwal
(AM)
(24 Points)
Replied 24 August 2013
CA Parul Saxena
(CA)
(8488 Points)
Replied 24 August 2013
TDS deducted on-24.08.13
TDS deposit on-12.09.13
Period covered-24.08.13 to 12.09.13 i.e.19 days
Interest is to be paid for 1 month. Suppose in your case TDS deposit date is 26.09.13 then interest would be for the period 24.08.13 to 26.09.13 i.e. 1month 2 day then interest is to be paid for 2 months (1month+2day=2months)as even a day is considered as a month in part of the month concept
William Peter.a
(CA Final )
(179 Points)
Replied 24 August 2013
Interest on TDS @ 1.5% has to be deducted for One Month, Since due date is 7th Sep 2013.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 24 August 2013
Agreed with above justifications of all esteemed members
PASUPATHY PARAMAGURU
(CA FINAL)
(286 Points)
Replied 24 August 2013
Harshvardhan
(Student CS)
(71 Points)
Replied 26 August 2013
Dear all,
I have a same problem, but may date of deduction is 31st March 2012 & date of deposite is 14th May 2012. For how many months i have to calculate the TDS ?
Manikanth
(Chartered Accountant)
(342 Points)
Replied 26 August 2013
2 months.
31.03.2012 to 30.04.2012 is 1 month
01.05.2012 to 14.05.2012 is 14 days i.e part of the month treated as full month
So, the period is 2 months.
Harshvardhan
(Student CS)
(71 Points)
Replied 26 August 2013
Dear Manikanth
But i have a TDS demand letter U/s 200A in which department has asked me pay interest of 3 months.
what should i do ?
CAclubindia
