Interest on tds u/s 201

Interest will be charged for 4 months, reason why, if deductor is failed to pay the tds within due date, the interest

should have to pay from the DATE OF TRANSACTION (EXPENDITURE).

So: Mar, Apr, May, June -  4 months @ 18% p.a.

Regards

Thanks Sir Maruthi ... I too believe the same and agree with you.

However, a Professional at my Clients place said that (part of the month as mentioned in the Section) will be taken as full month of March and interest will be for three months (Apr, May & June)

May I have the pleasure to know about you and your professional attainments.

Please refer the book " Income Tax Act " 2012. and go through as under

"l.805 CH. XVII - COLLECTTON AND RECOVERY - DEDUCTION AT SOURCE  S.201"

(ii) . at one and one-harf per cent for every month or part of a month on the amount of such tax from the date on which

such tax was deducted (22.03.2012 )to the date on which such tax is actually paid (30.06.2012).

hence, in your issue the interest should be paid for  March,April,May and June (4 months).

Regards

Intt for 4months @ 1.5% per month as aforesaid.