Interest on late deposit of TDS – 3 % for delay of one day

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 % . 

Suppose:

  • 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% 

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