TDS Interest % for March-20, Income Tax

[kiran kumar]

Dear Sir,

TDS for March-20 was paid on 02.05.2020. As per new rule Interest rate on tds is 0.75% per month. For March-20 we paid in 02.05.2020 now we need to pay 3 months interest 2.25% (Each month 0.75%).

If the above calculation is correct or not Requesting you to advise

Thanks & Regards,

Kiran Kumar

Posts / Replies

[Ganeshan Kalyani]

Sir, the current rate of TDS has been reduced by 25% from 14.05.2020 to 31.03.2021.

[CASusheel Gupta]

As per section 201

Interest is leviable at 1.5% (reduced rate 0.75%) 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 was actually remitted to the credit of the Government.

You have rightly stated that interest for three months is payable.

CA Susheel Gupta

9811004443, 8510081001

[kiran kumar]

Thanks for your clarification