TDS Interest Calculator — FY 2025-26
Calculate interest on late deposit (1.5%/month) and late deduction (1%/month) of TDS under Section 201(1A), plus late filing penalty under Section 234E (&rupee;200/day) and Section 271H (&rupee;10,000–&rupee;1,00,000). Updated with Budget 2024 amendments effective from April 2025.
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How to Use This Calculator
Late Deposit Interest tab
Enter the TDS amount deducted, the date TDS was deducted, and the date TDS was actually deposited with the government. The calculator computes the number of months of delay (part of a month = full month) and applies 1.5% per month interest under Section 201(1A). It also shows the statutory due date for deposit (7th of the following month, or 30 April for March deductions).
Late Deduction Interest tab
Enter the TDS amount, the date the payment was made (when TDS should have been deducted), and the date TDS was actually deducted. Interest at 1% per month applies for the delay period. The calculator also warns about additional late deposit interest if TDS is not deposited by the due date after deduction.
Late Filing Penalty tab
Enter the TDS return due date (Q1: 31 Jul, Q2: 31 Oct, Q3: 31 Jan, Q4: 31 May), the actual filing date, and the total TDS amount in the return. The calculator computes the Section 234E late fee (&rupee;200/day, capped at TDS amount) and checks whether Section 271H penalty (&rupee;10,000–&rupee;1,00,000) applies based on the Budget 2024 amendment (1-month safe harbor).
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The Formula
Interest and penalties for TDS non-compliance are governed by Sections 201(1A), 234E, and 271H of the Income Tax Act:
Interest = TDS Amount × 1.5% × Number of Months
Period: Date of deduction → Date of actual deposit
Part of a month = full month
Late Deduction Interest (Section 201(1A)):
Interest = TDS Amount × 1% × Number of Months
Period: Date payment made (when TDS was due) → Date TDS actually deducted
Part of a month = full month
Late Filing Fee (Section 234E):
Fee = &rupee;200 × Number of Days of Delay
Maximum fee = Total TDS amount in the return
Late Filing Penalty (Section 271H):
Penalty: &rupee;10,000 to &rupee;1,00,000 (at AO's discretion)
No penalty if: TDS deposited + late fee/interest paid + return filed within 1 month of due date
(Budget 2024 amendment, effective 1 April 2025 — previously 1 year)
All interest rates are per month, not per annum. The “part of month = full month” rule means even a 1-day delay into the next calendar month counts as a full additional month of interest. This makes timely compliance critical.
Example
Priya — Bangalore business owner who missed TDS deposit deadlines
Priya runs a consulting firm. She deducted TDS of &rupee;50,000 on a contractor payment on 15 January 2026 but only deposited it on 15 March 2026. She also filed the Q3 TDS return (due 31 January 2026) on 15 April 2026.
Step 1: Late Deposit Interest
Step 2: Late Filing Penalty
Total liability
Priya's total liability of at least &rupee;26,300 on a &rupee;50,000 TDS amount shows why timely compliance matters. Had she deposited by 7 February and filed by 31 January, her liability would have been &rupee;0.
FAQ
Late deduction (1% per month): When TDS was not deducted at the time of payment/credit. Interest runs from the date when TDS should have been deducted to the date it was actually deducted.
Late deposit (1.5% per month): When TDS was deducted but not deposited with the government on time. Interest runs from the date of deduction to the date of actual deposit.
If you both deducted late AND deposited late, both interests apply — but they cover different periods and don't overlap.