Interest on late deposit of TDS is applicable @ 1.5 % per month or part thereof. The period for delay is taken from date of deduction to date of deposit. So, in specific cases a delay of one day may lead to pay interest @ 3 % .
- TDS deducted on 01.08.13.
- In this case, due date will be 07.09.13.
- If we deposit tax on 08.09.13, one day delay.
- Interest will be applicable for 2 months – From 01.08.13 (date of deduction) to 08.09.13 (date of deposit) for two months @1.5 % p.m=3%