CA
45 Points
Joined February 2009
As per Sec 201(1A) of Income Tax Act, 1961, the person after deducting tax fails to pay it as required by or under this Act, he shall be liable to pay simple interest @ 1.5% for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.
In your case tax is deducted in April and paid in June. Hence interest is payable for 3 months i.e., from April (the date on which tax was deducted), May and June (the date on which tax is actuall paid) @ 1.5%.
The interest on Rs. 1,00,000/- comes to Rs. 4,500/- (Rs. 1,00,000 x 1.5% x 3 months).