What is the procedure of calculating interest on Late Deduction?
You have to deposit late deduction interest @ 1% per month or part of the month from the date of payment / credit to deductee till date of deduction.
Procedure for calculating Late Deduction:
| Amount Paid / Credited (Rs.) | TDS Deducted (Rs.) | Interest Calculation | ||||
|---|---|---|---|---|---|---|
| Date of Payment(dd-mmm-yyyy) | Due Date of Deduction(dd-mmm-yyyy) | Date of Deduction(dd-mmm-yyyy) | Period of Delay in Months | Interest on Late Deduction U/S 201 (1A)(Rs.)(Col 2 * Col 6 * 1%) | ||
| 100000.00 | 10000.00 | 3-Mar-2012 | 3-Mar-2012 | 4-Mar-2012 | 1 | 100.00 |
| Total | 100.00 | |||||
Correct Calculation
No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012
10000*1%*1(Months) =100.00
