Further the section 201(1A) reads as follows:
“Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—
(i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and
(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,
and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200:]”
Lets read the above section in a tabular presentation:
| Date of distribution of income (either paid or credited whichever is earlier) | Actual date of deduction of TDS | Due date of payment of TDS | Date of actual payment of TDS | No. of months for which Interest is payable for late deduction of TDS @1% pm | No. of months for which interest is payable for late deposit of TDS @ 1.5% |
| 15.01.2015 | 15.01.2015 | 07.02.2015 | 07.02.2015 | 0 | 0 |
| 15.01.2015 | 16.01.2015 | 07.02.2015 | 07.02.2015 | 1 | 0 |
| 15.01.2015 | 07.02.2015 | 07.03.2015 | 07.02.2015 | 2 | 0 |
| 15.01.2015 | 07.02.2015 | 07.03.2015 | 07.03.2015 | 2 | 0 |
| 15.01.2015 | 07.02.2015 | 07.03.2015 | 08.03.2015 | 2 | 2 |
| 15.01.2015 | 16.01.2015 | 07.02.2015 | 08.03.2015 | 1 | 3 |
| 15.01.2015 | 15.01.2015 | 07.02.2015 | 08.02.2015 | 0 | 2 |
| 15.01.2015 | 15.01.2015 | 07.02.2015 | 01.03.2015 | 0 | 3 |
The above table explains how small delay in deduction and/ or payment costs huge.
