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how to calculate intrest

lexbery (d) (227 Points)

13 April 2011

how to calculate interst on loan on the given example

example...1

17/1/11 deposited 2,00,000/-

25/1/11 deposited 1,00,000/-

24/3/11 deposited 3,00,000/-

at the end of 31/3/11,if interest is charged @ 12%

example..2

17/1/11 deposited 2,00,000/-

25/1/11 deposited 1,00,000/-

24/2/11 deposited 3,00,000/-

21/3/11 returned 1,50,000/-

at the end of 31/3/11,if interest is charged @ 12%

please reply urgently as i have to file tds return for the 4th quater

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 13 April 2011

Originally posted by : lexbery

how to calculate interst on loan on the given example

example...1

17/1/11 deposited 2,00,000/-

13+28+31 = 82 days !! 82/365*12/100*200000= 5391.78

25/1/11 deposited 1,00,000/-

24/3/11 deposited 3,00,000/-

at the end of 31/3/11,if interest is charged @ 12%

example..2

17/1/11 deposited 2,00,000/-

25/1/11 deposited 1,00,000/-

24/2/11 deposited 3,00,000/-

21/3/11 returned 1,50,000/-

at the end of 31/3/11,if interest is charged @ 12%

please reply urgently as i have to file tds return for the 4th quater

use this formula to get

no of days remaiing in year/365 * 12/100*amount deposited = interest accured.

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lexbery (d) (227 Points)
Replied 14 April 2011

thanks for the reply...but i need 1 more clarification...

since intrest is calculated every month,taking example 2 into consideration...

25/1/11 deposited 1,00,000/- no of days is 6

24/2/11 deposited 3,00,000/- no of days is 4

21/3/11 returned 1,50,000/- at the end of 31/3/11,

how will intrest will b calculated for the month ending march since 2,50,000/- is still due to be returned, and what will be the no of days for the remaing amount.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 14 April 2011

for month ending .................the calculation will be

1 x amount x no of remaining days in month/ 30 ( 1 is the product of 12% divided by 12 months)

ignore the irregular number of days in month and average count is 30 for this purpose.

for yearly calculation the total remaining number of days / 365

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 14 April 2011

alternate , calculate the whole interest and deduct the interest on paid out amount 1.5 Lacs * 10/365*12/100 = 493.15 ( interest amount of 1.5 lacs for 10 days)