Interest Rate on Late Deposit of TDS
Friends, As a deductor it is mandatory duty to deposit TDS/TCS in time. In case any TDS/TCS amount is not deposited in due time. It attracts interest on late deposit of TDS/TCS (Tax deduction at source/ Tax collected at source). Before 30/06/2010, interest rate on late deposit of TDS/TCS was only 1% p.m. for each month or any part thereof. But now Interest rate has been increased after 30/06/2010 from 1% to 1 and half (1.50%) p.m for each month or any part thereof.
Therefore all deductors are requrested to deposit TDS/TCS in due time. If any deductor deposit TDS only after 1 day from due date. It does not mean that only one day itnerest will be charged. Income Tax Department will charge interest for a month instead of a day.
(Overall Interest rate is 18% instead of 12% p.a. w.e.f. 01.07.2010)
One more thing is that interest amount should be deposited before submitting e-tds/e-tcs return/statement.
New TDS Rate with Excel TDS Calculator (Click here)