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TDS Interest & Late-Fee Calculator

Work out the exact interest and fee on a delayed TDS — late deduction (1% p.m., Sec 201(1A)(i)), late deposit (1.5% p.m., Sec 201(1A)(ii)) and late filing of the return (₹200/day, Sec 234E). Uses the standard “part of a month = full month” rule and the ₹-cap that the department applies.

Reviewed and maintained by a practising CA firm · FY 2026-27 · Income Tax Act 2025.

If TDS was deducted on the same day it was deductible, there’s no late-deduction interest.
Late-deduction interest
₹0
Late-deposit interest
₹0
Total interest u/s 201(1A)
₹0

Indicative computation for self-assessment. Final interest/fee in a TRACES demand may differ with conventions; confirm with your CA before payment.

How TDS interest is calculated — Section 201(1A)

There are two separate interest charges, and they can both apply to the same payment:

1. Late deduction — 1% per month [Sec 201(1A)(i)]. Runs from the date the tax was deductible (the date the amount was paid or credited, whichever is earlier) to the date it was actually deducted. If you deduct on the right date, this is nil.

2. Late deposit — 1.5% per month [Sec 201(1A)(ii)]. Runs from the date of deduction to the date of deposit — charged when the tax is deposited after the due date (7th of the next month; 30 April for March deductions).

The “part of a month = full month” trap: interest is charged for every month or part of a month, counted by calendar month — not by 30-day periods. So TDS deducted on 30 June and deposited on 8 July (just one day after the 7 July due date) attracts 2 months of late-deposit interest — for June and July — i.e. 1.5% × 2 = 3%, not a few days’ worth. Depositing even one day into a new calendar month adds a whole month of interest.

How the 234E late-filing fee works

Section 234E charges ₹200 for every day the quarterly TDS statement (24Q/26Q/27Q, now Form 138/140/144) is filed after its due date. The fee is capped at the total TDS deductible in that statement — it can never exceed the tax in the return. This fee must be paid before the return can be filed, and it is not waivable by the assessing officer.

Separately, Section 271H can levy a penalty of ₹10,000 to ₹1,00,000 for not filing within one year of the due date, or for filing incorrect details — this is at the officer’s discretion and is not auto-calculated above.

Frequently asked questions

Does late-deposit interest start from the due date or the deduction date?
When the deposit is late, the 1.5% interest is computed from the month of deduction up to the month of deposit (part months counted as full). If you deposit on or before the due date, no late-deposit interest applies at all.
Can the 234E fee be more than my TDS?
No. ₹200 × days of delay is the gross fee, but it is capped at the total TDS in that quarterly statement. If 200×days exceeds the TDS, you pay only an amount equal to the TDS.
Is interest charged on the TDS amount or the invoice amount?
Interest under 201(1A) is charged on the TDS amount (the tax short-deducted or short-paid), not on the invoice/payment value.
I deducted and deposited on time but filed the return late. What do I owe?
Only the 234E late-filing fee (₹200/day, capped at the TDS in the statement). There is no 201(1A) interest because the tax itself was deducted and deposited on time.

Need to track this across many companies? The TDS Working File app computes interest and fees automatically across every challan and quarter, and more calculators are here.