TDS Interest

FOR NON DEDUCTION OF TDS  INTEREST IS   @ 1%  PER MONTH FROM THE DATE OF PAYMENT OR ACCOUNT CREDITED (WHICH EVER IS EARLIER) TO ACTUAL DATE OF DEDUCTION

, AND FOR NON DEPOSIT OF TDS AMOUNT THE INTEREST RATE  IS @ 1.5% PER MONTH FROM THE DUE DATE FOR DEPOSIT THE SAME ( 7^th of next month , but subject to  31 march  ) TO DATE OF ACTUAL DEPOSIT.

If Deducted TDS is being not paid on next date ie. on 7th, It will be considered late for full month, from 7th to 30/31 will be considered 1 month if paid in between dates.

Further to keep in mind here that if amount paid in any date of succeeding month of due month it will be considred full month and Interest to be calculated accordingly.

For example,

1 - TDS due date is 7th MAY and paid on 12th MAY, Interest is payable for 1 month

2 - TDS due date is 7th MAY and paid on 6th JUN, Interest is payable for 2 months.