Hi Dipjyoti
Following demand is correct from ITO as period starts from the Date of Deduction to Actual date of deposit.
DOP = 07/05/2007 , - Date of deposit == 11/06/2007, Month of default = 2.
DOP = 10/05/2007 , - Date of deposit == 11/06/2007, Month of default = 2.
DOP = 15/05/2007 , - Date of deposit == 11/06/2007, Month of default = 1.
But in the following case, income department is wrong
DOP = 31/03/2008 , - Date of deposit == 07/05/2008, Month of default = 2 Here due date is 31/05/2008.
Same thing has happened in our co. There are defaults generated online in which Date of payment is 31st Mar and due date has been shown 7th Apr-11 whereas it should be 31st May if I remember correctly. I checked with our consultant for the same. He sent a boy from his office with this query to ITO (TDS). ITO informed that wait for Notice to come and then reply to it with details. As in your case, you have received notice, I would suggest you to reply to Notice mentioning that this demand is not correct and let them take the further action. Please attach the details for which they have demanded interest like Name of Vendor, Date of Credit/ Payment, Amount, TDS Deducted, TDS deposited, Challan No., Challan Date and Due date of deposit.
If you have ever filed TDS return, you must have seen the column of "Paid by Book Entry" in deductee details. This column is for the TDS deducted on provision amount. If you have deducted TDS on provision amount, you need to select yes in this column (in deductee details only). 'Income Tax software' is actually calculating the interest according the the values set in this column. If value in this column is Yes, it takes due date as 31st May otherwise 7th Apr. However, you are not at mistake in this matter and proceed as suggested earlier.