Statutory Assessment Form
Transaction & Compliance Dates
TDS Statutory Default Summary
TDS (₹50,000) + Interest (₹2,250) + Late Fee (₹0) = ₹52,250
Component-wise Statutory Breakdown
Tax was deducted on or before the deductible date. No interest for failure to deduct.
Deposit due date was 07/06/2026. Payment made on 20/07/2026. Statutory interest runs from the date of deduction (15/05/2026) to payment date for 3 month(s) @ 1.5% per month on ₹50,000.
Statement was filed on or before the prescribed due date (31/07/2026). Zero late fee.
TRACES / CPC-TDS operational system-generated intimations historically compute interest on a calendar-month basis (counting each calendar month touched). Where an automated Section 200A intimation reflects a higher calendar month charge, the excess is contestable under Rule 119A and authoritative tribunal rulings (e.g. Tata Teleservices Ltd. v. DCIT). Verify the system-generated demand separately.
Income-tax Act, 1961 vs. Income-tax Act, 2025
| Statutory Subject | Income-tax Act, 1961 | Income-tax Act, 2025 | Statutory Scope |
|---|---|---|---|
| Failure to Deduct Interest | Section 201(1A)(i) @ 1.0% / month | Section 398(3)(a)(i) @ 1.0% / month | From deductible date to actual deduction date |
| Late Deposit Interest | Section 201(1A)(ii) @ 1.5% / month | Section 398(3)(a)(ii) @ 1.5% / month | Runs strictly from deduction date to payment date |
| Statement Late Filing Fee | Section 234E (₹200/day capped at TDS) | Section 427 (₹200/day capped at TDS) | From statement due date to actual filing date |
| Deposit Due Dates | Rule 30 (7th of next month; 30th April for March) | Rule 218 (7th of next month; 30th April for March) | Govt book entry: same day; Challan-cum-statement: 30 days |
| Interest Computation & Rounding | Rule 119A (Fraction = full month; ₹100 floor) | Rule 282 (Fraction = full month; ₹100 floor) | Tax base ignores fraction of ₹100; s. 288B rounds total to ₹10 |
| Salary Statement | Form 24Q | Form 138 | Quarterly salary return (Section 192 / Section 393) |
| Resident Non-Salary Statement | Form 26Q | Form 140 | Contractors, professionals, rent, commission, goods |
| Specified Challan-cum-Statement | Forms 26QB, 26QC, 26QD, 26QE | Form 141 | Property purchase, individual rent > ₹50k, 194M, 194S VDA |
| TCS Quarterly Statement | Form 27EQ | Form 143 | Tax Collected at Source schedule |
| Non-Resident Statement | Form 27Q | Form 144 | Foreign payments, DTAA treaty remittances (Section 195) |
Legal Analysis: Judicial Interpretation of 'Month or Part Thereof' under Direct Tax Law
Section 201(1A) of the Income-tax Act, 1961 and Section 398(3)(a) of the Income-tax Act, 2025 both mandate simple interest 'for every month or part of a month'. Rule 119A(b) of the Income-tax Rules, 1962 (and Rule 282 of the 2026 Rules) operationalizes this by deeming any fraction of a month to be a full month.
In contrast, the Centralized Processing Cell (CPC-TDS) and TRACES automated batch software calculate interest on a calendar-month touched basis, which may bill 2 full months for a 1-day crossing over month-end.
However, appellate judicial authorities—specifically the ITAT Bangalore Bench in Tata Teleservices Ltd. v. DCIT [2016] 158 ITD 560 and the Gujarat High Court in CIT v. Arvind Mills Ltd. (339 ITR 378)—have held that interest measures continuous elapsed duration. A fractional delay of a few days constitutes a single fraction of a month, which Rule 119A rounds to exactly 1 month. The SKM Laws calculator implements this elapsed duration doctrine as its primary legal computation while transparently explaining the TRACES administrative demand model.
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