Procedure of calculating interest on Late Payment of TDS

By | January 25, 2015
Procedure of calculating interest on Late Payment of TDS

Deposit late payment interest @ 1.5% per month or part of the month from the date of deduction till date of deposit.

Procedure for calculating Late Payment:

Amount Paid /        TDS Deducted(Rs.)       TDS Deposited(Rs.)    TDS Credit Allowed to the
Credited(Rs.)                                                                                    Extent of Available Balance(Rs.)
 100000.00                        10000.00                5000.00                                  4000.00

                                  Interest Calculation
Date of                    Due Date for                          Date of Deposit                   Period of Delay
Deduction                 TDS Deposit                         as Per OLTAS                     in Months
(dd-mmm-yyyy)             (dd-mmm-yyyy)                      (dd-mmm-yyyy)                    
4-Mar-2012                 30-Apr-2012                  7-May-2012 3                         3 months

Interest on Late Payment U/S 201 Calculation

No. of months in Defaults = 3 i.e., Mar-12 to May-12

4000*1.5%*3(Months) =180.00

Category: TDS

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