What is the interest for late deduction of TDS?

1 percent per month or part of a month under Section 201(1A)(i), from the date the tax was deductible to the date it was actually deducted. If you deducted late but deposited on time after that, only this leg applies.

What is the interest for late deposit of TDS?

1.5 percent per month or part of a month under Section 201(1A)(ii), from the date of deduction to the date of deposit. This is the more expensive leg, and part months count in full, so a deposit one day after the 7th costs a full month.

When is TDS due for deposit?

By the 7th of the following month, except March deductions which are due by 30 April. Government deductors paying without challan deposit on the same day. Quarterly TDS returns (24Q, 26Q, 27Q) are due on 31 July, 31 October, 31 January and 31 May.

What is the late fee under Section 234E?

₹200 per day from the due date of the TDS return until it is filed, capped at the total TDS deductible for that quarter. It is a fee, not interest, and must be paid before the return can be submitted. It applies per return, so one late quarter on two forms is two fees.

Is there a penalty beyond interest and fee?

Yes. Section 271H allows a penalty of ₹10,000 to ₹1,00,000 for a return filed more than a year late or with incorrect information. Disallowance under Section 40(a)(ia) of 30 percent of the expense can also apply where TDS was not deducted or not deposited by the return due date.

TDS Interest & Late Fee Calculator

Interest for deducting or depositing TDS late under Section 201(1A), and the per-day late fee for TDS returns under Section 234E.

Switch tool

Interest u/s 201(1A)

TDS amount (₹)

₹

Deductible on

Deducted on

Deposited on

Deductible: date of payment or credit, whichever is earlier. Deposit due by the 7th of the next month (30 April for March).

Late fee u/s 234E (TDS return)

Return due

Return filed

Total TDS for the quarter (₹)

₹

Interest and fee

Late deduction1% × 0 mo

₹ 0

Late deposit1.5% × 0 mo

₹ 0

Interest u/s 201(1A)

₹ 0

Return late by

0 days

Late fee u/s 234E₹200 / day

₹ 0

Total interest + fee

₹ 0

Indicative only. Sections 201(1A) and 234E. Part months count as full months. Penalty under 271H and disallowance under 40(a)(ia) are not included.

How it works

Two interest legs

1% a month from when TDS was deductible until deducted; 1.5% a month from deduction until deposit.

Part months

Any part of a month counts as a whole month on both legs.

234E fee

₹200 a day from the return due date, capped at the TDS for that quarter.

The real cost of a missed TDS date

TDS defaults compound: a late deduction attracts 1% a month, a late deposit 1.5% a month, and a late quarterly return ₹200 a day, each on its own clock. Enter the amounts and dates and the calculator shows each component and the total, so a client can see why a two-week delay on a ₹5 lakh deduction costs more than they expected.

Three dates

Deductible, deducted, deposited. Each gap is charged separately.

Month counting

The 8th of the month is as expensive as the 30th.

Fee cap

234E cannot exceed the TDS deductible for the quarter.

What is excluded

271H penalty and 30% expense disallowance are separate exposures.