pl.explain the interest calculation about tds.explain in the briefly manner.
4 Replies
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 05 January 2012
Shyam ji,
If TDS is deducted but not paid to the credit of Govt. – 1.5% p.m.
If TDS is not deducted at all – 1% p.m.
The interest on TDS is calculated from the date of deduction.
e.g.
If TDS is deducted on 5.8.2011 but paid on 15.12.2011-
Interest have to be paid for 5 months i.e. Aug 11 to Dec 11.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 05 January 2012
Interest @ 1% p.m. if TDS not deducted on the prescribed date.....
and Interest @ 1.5% p.m. if TDS Deducted but not paid to the credit of the Central Government...
and for that purpose, half of the month shall be considered as full month....
e.g. 08 Aug. 2011 to 09 Sep. 2011.... shall be counted as 2 months.....
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 05 January 2012
interest is calculated on date to date basis. If tds is deducted on 2nd of Sep-11. It was not deposited on 7th Oct-11 but was deposited on 8th Oct-11. Then, period of interest will be from 2nd Sep-11 to 8 Oct-11 which will be 1 month 6 days. Since any part of month is rounded up. Therefore total interest period will be 2 months.
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