Answer

1. F

   Facts

   Under Sec 201(1A) (now Sec 398(3)), interest is 1% a month or part of a month from the date TDS was deductible to the date it was deducted, and 1.5% a month from the date it was deducted to the date it was paid.

2. P

   Provisions and law

   • Sec 201(1A), Income-tax Act 1961 (now Sec 398(3), Income-tax Act 2025)Interest at 1% a month for late deduction and 1.5% a month for late payment after deduction
   • Sec 201, Income-tax Act 1961 (now Sec 398, Income-tax Act 2025)A deductor who fails to deduct or pay TDS is treated as an assessee in default
3. A

   Analysis

   Each part of a month counts as a full month. Example: TDS of ₹20,000 deducted on 25 June but paid on 10 August (due 7 July). Interest is 1.5% for June, July and August, that is 3 months, so ₹900. If the TDS was deductible in May but deducted in June, add 1% for the late deduction period too. Pay the interest through a challan for the same TAN, year and section.

4. C

   Conclusion

   1. 1List deduction, deposit and due dates for each payment
   2. 2Count months, treating part months as full
   3. 3Compute 1% and 1.5% interest separately
   4. 4Pay through e-Pay Tax for the right year and section
   5. 5Tag the interest challan in a correction statement

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.