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Tds interest calculation please help

Ankush (Student) (1369 Points)

05 June 2020

payment on 31st march 2020 and deposit on 30th May. how many months interest to be deposited. please explain calculation.

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5 Replies

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 05 June 2020

Two months, april and may month..

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Ankush (Student) (1369 Points)
Replied 05 June 2020

Should it not be three months? please explain calculation sir

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 05 June 2020

Interest is at the rate of .75% per month from the date at which TDS was deducted to the actual date of deposit. since you have deducted tax at 31st march so i think for one day it will not be calculated as whole month meaning if tax is deducted on 13th march then interest need to be deposit for 3 months since it is last day according to me it will not be deemed as whole month and interest need to be deposit for 2 months i.e. april and may.

Ankush (Student) (1369 Points)
Replied 05 June 2020

Okay thank you so much, just to confirm, you mean if tds was deducted on 30th March we will have to deposit interest for three months

sreenivas716@gmail.com (4 Points)
Replied 06 June 2020

What is the meaning of part of the month, even one day it counts so three months.
what is the error type whether tds deducted and not deposited or tds not deducted at all.
there are different rated for different errors.