If TDS deducted on salary is not paid with in the due date, than for interest calculation purpose how to calculate for number days.
It will be @ 1.5% for one month or from due date to date of payment.
Regards
Dayananda
6 Replies
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 26 September 2011
Hi, for this you can refer to the section 201(1A) of income tax act .1961
CA RICHA BADALIA
(CA,CS)
(1682 Points)
Replied 26 September 2011
Interest from the date when tax deductible to actually deducted-1%
Interest from the date when tax actually deducted to tax actually paid-1.5%
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 26 September 2011
I have refered and as per my understanding of section it is from due date to till date of payment. But most of pepole with whom i have discussed are telling it is for whole month. Hence need clarification.
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1831 Points)
Replied 26 September 2011
TDS on interest is calculated on monthly basis and not daily basis. If your payment is delay by 1 day you have to paid interest for 1 month @ 18% p.a. or 1.5% p.m.
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 27 September 2011
Earlier Rate of interest was 1%..
Now Rate of interest is 1.5% per month...
If delay of one day,then interest of whole month is charged...
Days is calculated from the day,on which TDS is to be deposited....
Right said avobe,u can refer sec 201(1A)....
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