TDS Interest Calculation

• November 14, 2019
• CA Chandan Agarwal's Office

Interest Calculation in TDS-Demystified

This article aims to simplify interest calculation when TDS CPC aims processes TDS returns with interest demands.

There are two sections that are constantly used in TDS interest calculation:

1. Section 201(1A)-Interest on failure to deduct tax and interest on failure to deposit deducted tax amount.

2. Section 220(2)-Interest on failure to pay the amount demanded u/s 156 issued by way of notice of demand.

Read more on: https://taxguru.in/income-tax/tds-interest-calculation.html