**The interest is to be calculated as per illustrations below: **

**Case 1:**

Tax Deducted on 26^{th} June, TDS deposited on 9^{th} July (due date was 7^{th} July)

The period of 26^{th} June to 30^{th} June will be calculated as one month (being part of a month) & from 1^{st} July to 9th July will also be treated as one month. As such in this case, the interest payable is for two months. Total interest would be 3%. Sounds odd, but it is true – for a delay of 2 days, one has to pay interest for two months.

**Case 2:**

Tax Deducted on 20^{th} March, TDS deposited on 5^{th} May (due date was 30^{th} April)

The period of 20^{th} March to 31^{st} March will be calculated as one month, 1^{st} April to 30^{th} April will be another month & from 1^{st} May to 5^{th} May will be treated as another one month. As such in this case, the interest payable is for three months. Total interest would be 4.5%. For a 5 day delay, the interest payable is for 3 months.

**Logic behind this calculation is that, if dues are not paid on time, the interest for each month (or part thereof) is to be paid right from the date of deduction till date of deposit of the TDS. Each month is treated based on the Calendar Month instead of counting the number of days.**

Soma SahaSir, Please help me about late payment of TDS : Bill date 04.10.18 Amount Rs.36854.58, (u/s 194C @2%). TDS payment will be made on 07.12.18. What would be the Interest amount?

AZARAHAMEDTDS OF DETECTED 19.12.2017 WE WILL PAY 02.02.2018 HOW TO CALCULATED FOR INTEREST

Ram ChanderDate of Tax Deduction 30/06/2016

Due Date for TDS Deposit (As per Traces Justification Report) 08/07/2016

But as per Rule TDS Deposit Date is 07/07/2016

Date of Tax Deposited 12/02/2016

As per above illustration, the month are 6 but traces mentioned 5 month in justification report.

how is possible?

Please advise

What is the base of calculation of months for late payment

Dharmesh DedhiaMy question is one party to payment Contract Bill Rs.60000/-dt- march 2017 no tds deduction,bymistake i pay 2000 tds amount on 7th april 2017 . what is the interest calculate on rest amount or full amount & how much?

giri krishnaMy question is one party to payment Contract Bill Rs.60000/-dt- April 2016 no tds deduction,till MAr 2017 countinence paid fully amount.i want to pay tds with interest. How to calculate tds interest please.

AMAR SWAINMy question is one party to payment rent Rs.17043/-dt-oct-2015 no tds deduction,till june-2016 countinence paid fully amount.i want to pay tds with interest. How to calculate tds interest please.

V.SUMATHIFeb 2016 TDS Amount Rs.4000 how to calculate the interest amount please

venkateshmy question is tds amount for commission is deducted on 15/01/2016 and paid on 02.04.2016. how to calculate the interest amount please

Ram chanderDate of Tax Deduction 31/12/2015

Date of Tax Deposited 12/02/2016

As per above illustration, the month are 3 but traces mentioned 2 month in justification report.

how is possible?

Pleas advise

HarrisActually it will compute as 30 days i.e 31/12/2015 to 31/01/2016 is one month plus February month(Even part of the month till 29/02/2016). So, it will be 2 months default.

dikshadate of deduction 10/11/15 date of deposit 4/1/2016 please explain rate of inderest

Faiz AnwarDate of deduction is 10 Nov

Due date of payment is 7 Dec

Actual payment made is on 4 Jan

Hence, there is a delay in payment.

As per department, since 3 calendar months are involved, you will have to pay interest @ 1.5% for 3 months, i.e., 4.5%