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 01.08.2013,

In this case,  due date will be 07.09.2013

If we deposit tax on 08.09.2013, one day delay also., interest will be applicable for two months i.e., from the date of deduction  (in our example it is 01.08.2013) to date of  deposit (i.e., 08.09.2013) @ 1.5% per month (that will be equal to 3%).

So be aware of the due dates & provisions of the laws.