TDS Interest Calculator (India)
Calculate interest on late deduction, late payment, or late filing of TDS in India. Get accurate results under Sections 201(1A) and 234E with charts.
Any part of a month counts as a full month.
About This Calculator
Our TDS Interest Calculator (India) helps taxpayers, chartered accountants, tax professionals, and businesses compute the exact interest and penalties payable for non-compliance with TDS (Tax Deducted at Source) deadlines under the Indian Income Tax Act, 1961. Whether you missed a TDS deduction deadline, deposited TDS late, or filed your TDS return after the due date, this tool provides instant, accurate calculations for all three scenarios.
The calculator covers three scenarios: (1) Late deduction of TDS -- interest at 1% per month under Section 201(1A)(i) from the transaction date to the deduction date; (2) Late payment of TDS -- interest at 1.5% per month under Section 201(1A)(ii) from the deduction date to the deposit date; (3) Late filing of TDS return -- a fee of ₹200 per day under Section 234E, capped at the TDS amount. All calculations use whole months (any part of a month counts as a full month) as per the Income Tax Act, ensuring compliance with statutory requirements.
Key TDS deadlines include payment by the 7th of the following month (with a special 30th April deadline for March for non-government deductors) and quarterly return filing within one month of the quarter ending. Missing these deadlines triggers automatic interest accrual. Use this calculator to estimate your total liability before filing with the Income Tax Department and avoid surprises during assessments.
Regional note: This calculator is specific to India's TDS provisions under the Income Tax Act, 1961. The rates (1%, 1.5%, and ₹200/day) are statutory rates set by the Indian government and may be amended by annual finance acts. Always verify current rates with your tax advisor or the Income Tax Department of India.
Frequently Asked Questions
How do I calculate interest on late deduction of TDS?
Interest on late deduction of TDS is calculated at 1% per month or part of a month from the date TDS was deductible (the date of transaction) to the date it was actually deducted. For example, if TDS of ₹10,000 was deductible on 15th April but deducted on 2nd May, interest = ₹10,000 x 1% x 2 months = ₹200.
How do I calculate interest on late payment of TDS?
Interest on late payment of TDS is calculated at 1.5% per month or part of a month from the date TDS was deducted to the date it was actually deposited. For example, if TDS of ₹10,000 was deducted on 7th May but deposited on 12th May, interest = ₹10,000 x 1.5% x 2 months (May and the deduction month) = ₹300.
What is the penalty for late filing of TDS return?
Under Section 234E, a fee of ₹200 per day is charged for late filing of the TDS return. The fee is calculated from the due date of filing until the actual date of filing. The total fee cannot exceed the amount of TDS. For example, if a TDS return is filed 43 days late, the fee = 43 x ₹200 = ₹8,600, capped at the TDS amount.
What is the due date for TDS payment?
TDS must be paid by the 7th of the following month. For March, the due date is 7th April for government deductors and 30th April for other deductors. If the TDS is deducted in April, the payment due date is 7th May; for May, 7th June; and so on.
When is the TDS return filing due?
TDS return filing due dates are: Q1 (Apr-Jun) by 31st July, Q2 (Jul-Sep) by 31st October, Q3 (Oct-Dec) by 31st January, and Q4 (Jan-Mar) by 31st May. Filing after these dates attracts a fee of ₹200 per day under Section 234E.
What happens if I do not deduct TDS at all?
If you fail to deduct TDS when required, you may be treated as an assessee-in-default under Section 201(1). You will be liable to pay interest at 1% per month from the date TDS was deductible until the date it is deducted. Additionally, you may face disallowance of expenses under Section 40(a)(ia).
Is the TDS interest calculator free to use?
Yes, this TDS interest calculator is completely free to use with no registration required. You can calculate interest on late deduction, late payment, and late filing of TDS returns instantly.