Skip to content
Finance Calc Kit
Tax

TDS Interest

Calculate Indian TDS late deduction interest, late payment interest, and late filing fees.

TDS default details

₹

Principal tax deducted at source

Late payment dates

Total outstanding TDS and fees

₹10,450

Principal ₹10,000 plus interest and fees

Late payment interest

₹450

1.5% x 3 month(s)

Total interest

₹450

Section 201(1A) simple interest

Cost breakdown

Outstanding composition

Total payable₹10,450
  • Principal TDS₹10,00095.7%
  • Late payment interest₹4504.3%

Statutory reference

Late deduction (Sec 201(1A)): 1% per month or part of a month from the date TDS is deductible to the date of actual deduction.

Late payment (Sec 201(1A)): 1.5% per month or part of a month from the date of deduction to the date of deposit.

Late filing (Sec 234E): Rs 200 per day from the return due date to the actual filing date, capped at the TDS amount.

Rates and due dates verified for FY 2025-26, effective 1 April 2025. Interest under Section 201(1A) is mandatory and must be paid before filing the quarterly TDS statement. Calendar-month counting applies: any part of a month counts as a full month.
Report tool

What is the TDS Interest Calculator?

The TDS Interest Calculator estimates interest and late filing fees on delayed Tax Deducted at Source (TDS) compliance in India. It covers late deduction interest, late deposit interest under Section 201(1A), and the Section 234E late-filing fee on quarterly TDS returns. All math runs in your browser.

For broader income tax planning, pair this with the income tax calculator. For GST compliance on business payments, see the GST calculator. For provident fund deductions on salary, use the EPF calculator.

Section 201(1A): interest on TDS defaults

Under the Income Tax Act, 1961, a person who fails to deduct TDS or fails to deposit deducted TDS within the prescribed time is deemed an assessee-in-default and must pay simple interest. Rates verified for FY 2025-26, effective 1 April 2025:

1. Late deduction interest (1% per month)

If tax is deductible but not deducted, or deducted late, interest is charged at 1% per month or part of a month from the date TDS was deductible to the date of actual deduction.

Late Deduction Interest=TDS Amount×1%×Months\text{Late Deduction Interest} = \text{TDS Amount} \times 1\% \times \text{Months}

2. Late payment interest (1.5% per month)

If TDS is deducted but not deposited on time, interest is charged at 1.5% per month or part of a month from the date of deduction to the date of actual deposit with the government.

Late Payment Interest=TDS Amount×1.5%×Months\text{Late Payment Interest} = \text{TDS Amount} \times 1.5\% \times \text{Months}

Monthly TDS for April through February is generally due by the 7th of the following month. March TDS is due by 30 April. Interest is computed on the TDS amount, not the gross payment.

3. Late return filing fee (Section 234E)

A fee of Rs 200 per day applies for delay in filing the quarterly TDS statement (Form 24Q, 26Q, 27Q, or 27EQ). The fee is capped at the TDS amount for that statement and must be paid before filing the return.

Late Filing Fee=min⁡(TDS Amount,  Delay Days×200)\text{Late Filing Fee} = \min(\text{TDS Amount},\; \text{Delay Days} \times 200)

How calendar months are counted

Under Section 201(1A), any part of a calendar month counts as a full month. A delay from 15 May to 15 July spans three calendar months (May, June, July), even though only 61 days have elapsed. The Income Tax Department official interest tool uses the same calendar-month method.

Worked example: late payment interest

TDS of ₹10,000 deducted on 15 May 2026 but deposited on 15 July 2026 (late payment only):

  • Calendar months: May, June, July = 3 months
  • Late payment interest = ₹10,000 x 1.5% x 3 = ₹450
  • Total payable = ₹10,000 + ₹450 = ₹10,450

TDS due dates summary

ActivityDue dateCharge
Monthly TDS deposit (Apr to Feb)7th of following month1.5% per month or part
March TDS deposit30 April1.5% per month or part
Quarterly TDS return filing31 Jul, 31 Oct, 31 Jan, 31 MayRs 200/day (capped at TDS amount)

Frequently asked questions

Is a fraction of a month rounded up for TDS interest?
Yes. Under Section 201(1A), any part of a calendar month counts as a full month. A delay of 1 month and 1 day is treated as 2 months of interest. This calculator uses calendar-month counting consistent with the Income Tax Department official tool.
Can interest on late TDS payment be waived?
Interest under Section 201(1A) is mandatory and compensatory. Waiver is rarely granted and is only possible under exceptional circumstances through an appeal to the Commissioner of Income Tax. The interest must be paid before filing the quarterly TDS statement.
What is the penalty if TDS is not deducted at all?
Beyond the 1% per month late deduction interest, Section 271C may impose a penalty equal to the tax not deducted. Additionally, 30% of the corresponding expense may be disallowed under Section 40(a)(ia) for business taxpayers.
What is the maximum late filing fee under Section 234E?
The fee is Rs 200 per day of delay in filing the quarterly TDS statement, but the total cannot exceed the TDS amount for that quarter. The fee must be paid before the statement is filed.
On what amount is TDS interest calculated?
Interest under Section 201(1A) is calculated on the TDS amount that was deductible or deducted, not on the gross payment from which TDS was withheld. For example, if Rs 10,000 TDS was deducted from a Rs 1,00,000 payment, interest applies to Rs 10,000.
Which financial year do these rates apply to?
The rates in this calculator (1% late deduction, 1.5% late payment, Rs 200/day filing fee) are verified for FY 2025-26, effective 1 April 2025. These statutory rates have remained stable; confirm current provisions on incometaxindia.gov.in before remitting.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.