interest calculation
Shashi Kiran (12 Points)
26 September 2017
whether interest calculated on no of days or no of months and whether it is 18% or 1.5 % per month
13 Replies
CA Amit Kumar
(Chartered Accountant)
(346 Points)
Replied 26 September 2017
As per my view it is calculated on No. of Days.. And the rate is 18% p. a.
Shashi Kiran
(12 Points)
Replied 26 September 2017
But interests 18 % per annum, then how to calculate for month interest
CA Amit Kumar
(Chartered Accountant)
(346 Points)
Replied 26 September 2017
First calculate for one year then divide it by 365
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 26 September 2017
Don't be confused the calculation of Interest... Just you ll follow the way...
Tax Liability (X) 18% (/) 365 (X) No.of Days later (after 20th)
If August liability amount is Rs. 10000 ,Payment on 25th September....
10000 x 18% = 1800 / 365 = 4.93 x 5 = 24.66 R. off 0.34 = 25....
Interest amount Rs. 25.....for 5days....
Tax Liability (X) 18% (/) 365 (X) No.of Days later (after 20th)
If August liability amount is Rs. 10000 ,Payment on 25th September....
10000 x 18% = 1800 / 365 = 4.93 x 5 = 24.66 R. off 0.34 = 25....
Interest amount Rs. 25.....for 5days....
Shashi Kiran
(12 Points)
Replied 26 September 2017
Then we can divide that 18% into 18/12- 1.5 per month
CA Amit Kumar
(Chartered Accountant)
(346 Points)
Replied 26 September 2017
Your interest will be approx same but the Correct way to calculate is as per Raja P M sir told..
Shashi Kiran
(12 Points)
Replied 26 September 2017
we can calculate in this way by 1.5 per month or we have to 18% per month
CA Amit Kumar
(Chartered Accountant)
(346 Points)
Replied 26 September 2017
18% per year.. Its not per month
Shashi Kiran
(12 Points)
Replied 26 September 2017
thank you so much for your good information regarding interest calculation to Amit Kumar sir and raja p m sir
ishika
(CA)
(287 Points)
Replied 28 September 2017
Interest calculations from the due date i.e. 1000*18/100*1/365= Rs. 0.49 per day approximately.
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