What interest do I pay if I deposit TDS late?

Question

tdsguru.in (CA firm) · Accepted Answer

1% per month for late deduction and 1.5% per month for late deposit, under Section 201(1A), counted for every month or part of a month. Section 201(1A) charges interest in two situations: 1% per month or part of a month from the date the tax was deductible to the date it was actually deducted, and 1.5% per month or part of a month from the date of deduction to the date of deposit. Even a one-day delay across a month boundary counts as a full month, so deposits made on the 8th instead of the 7th can cost two months' interest. Use a late-fee calculator to compute the exact figure before paying.