Interest on TDS Deducted But not Paid, Income Tax

[guna ch]

Dear Sir,

 

Tds is Deducted on 20/01/2013, Rs.10,000/-, Due Date is 07/02/2013

 

But i unable to pay the amount on due date , i paid the TDS amount on 11/02/2013 with interest of Rs.20/-

(10,000 X 18%X 4days/365days= 20/-)

But one of my freinds said that i should calculate interest for one month

Whichever is correct either tds interest calculate on days basis or month basis

 

Kindly replay me.

Thanking You

 

 

Posts / Replies

[Sanjeev Sharma]

In accordance to Section 201(1A), if there is dely in payment of TDS after deduction, interest is payble at one and one-half per cent 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 this case Date of Deduction -  20/01/2013 & Date of Deposit - 11/02/13 - It is 22days ,therefore interest is to be paid @ 1.5% for one month ( month or part of the month) i.e. RS 150.00