Finance Act 2010 - Sec 40(a)(ia).. Related amendment in Sec201(1)

Related amendmnt in Sec201(1)

Earlier,Simple Intt was payable @1%p.m. in both the failure i.e. failure
1.to deduct tax
2.to deposit aftr deductn

Now by amendment,Intt rate has been changed:
1.failure to deduct-1%pm
2.failure to deposit aftr deductn- 1.5%pm

Example

Q.On1.7.2010-Rs.40000 paid without TDS.
On28.2.2011-Rs-50000 paid & TDS@10% Rs.9000 and deposited it on 22.6.2011.Compute intt u/s201(1)

Ans.1%on 4000 for 8Months
&1.5%on 9000 for 4months
=Total860/-