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Interest calculation

Jatin (Accountant) (3479 Points)

16 January 2019

Please note,

Date of Deduction of TDS - 30.11.18

Date of Deposit of TDS - 15.01.19

How to calculate Interest for late deposit of TDS, which is correct

Nov to Jan - 1.5% p.m. for 3 months

or

Dec to Jan - 1.5% p.m. for 2 months

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5 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 16 January 2019

November to Jan 3 months @ 1.5% interest of each month so total 4.5%

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Jatin (Accountant) (3479 Points)
Replied 16 January 2019

Agree with you, I am always calculate interest as per your reply.

Doubt raised while filling TDS return from TDSMAN Software (If tds deducted last day of the month not consider for interest calculation as per instruction / blog TDSMAN) - 2 months only from Dec to Jan)

Is it right?

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 16 January 2019

1.5% Interest for the period Nov 2018 to Jan 2019 . agreed with Ruchika Somani

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 16 January 2019

Originally posted by : Jatin
	Agree with you, I am always calculate interest as per your reply.Doubt raised while filling TDS return from TDSMAN Software (If tds deducted last day of the month not consider for interest calculation as per instruction / blog TDSMAN) - 2 months only from Dec to Jan)Is it right?

No
N

Jatin (Accountant) (3479 Points)
Replied 16 January 2019

Thank you Ms. Ruchika & Mr. Naveen Chand

Why software alert for wrong calculation but I am right

Please read article on Interest on Late Payment of TDS on TDSMAN website, clearly instruct if tds deducted on last day of the month, not consider for interest calculation