Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty.

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

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