Interest on Late Payment of TDS :
In case the assesse deposits the TDS Payment after the due date of payment of the Tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the Govt. Earlier, the Interest liable to be paid was 1% but this has been increased to 1.5% pm with a view to discourage the practice of delaying the deposit of tax after deduction.
TDS late payment interest calculation for FY 2016-17 :
Interest @ 1.5% is liable to be paid from the date on which the TDS was deducted and not from the date the TDS was due. This can be explained with the help of an example.