Hello everybody!!
I have a doubt....How to calculate 'MONTH" in income tax act. What is the definition of Month in income tax act??? For clarification take the given below example
Payment Date : 30.12.2011
Commission Amount paid : 150000/-
Grossing up the paid amount and considered Total commission as Rs. 166667/- and TDS as Rs. 16667/- deducted on 30.12.11
Date to be deposit of TDS - 07.02.2012
Now question is how the no. of months taken for interest on late deposit of TDS??
1) 3 months as
30.12.11 to 31.12.11 - 1 month (as part of month)
01.01.12 to 31.01.12 - 1 month
01.02.12 to 07.02.12 - 1 month (as part of month)
2) 2 months as
30.12.11 to 28.01.12 - 1 month (as 30 days month)
29.01.12 to 07.02.12 - 1 month (as part of month)
Please clarify with suitable clauses...considering the above example???
Thanks & Regards,
Hammad
CAclubindia
