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TDS Interest & Late Fee Calculator

Interest for late TDS deduction or payment, the ₹200 a day late fee and penalty exposure — Section 201(1A), 234E / 398, 427.

The TDS Interest and Late Fee Calculator works out interest for late deduction of TDS (1% a month) and late deposit (1.5% a month) under Section 201(1A) of the Income-tax Act, 1961, or Section 398 of the Income-tax Act, 2025 from 1 April 2026, counting part of a month as a full month. It also computes the Rs 200 a day fee for a late TDS statement under Section 234E / Section 427, capped at the TDS amount, and shows whether the penalty of Rs 10,000 to Rs 1 lakh under Section 271H / Section 461 can arise.

Use the TDS Interest & Late Fee Calculator

1. Interest on late deduction or late payment

2. Late fee on the quarterly TDS statement

TDS Interest and Fees

Law applied (by date deductible)—
Late deduction: months at 1%0
Interest on late deduction₹ 0
Due date for payment—
Late payment: months at 1.5%0
Interest on late payment₹ 0
Total interest₹ 0
Statement due date—
Days late0
Late fee (₹200 a day, up to the TDS)₹ 0
Enter the TDS amount and dates.
Interest is worked out on the TDS amount for each calendar month or part of a month, as the TDS processing system does. Government deductors paying without a challan must pay on the same day, which the tool does not model. Interest is not an allowable business expense.
Income Tax Act 2025 transition: This tool covers both FY 2025-26 (AY 2026-27), under the Income Tax Act, 1961 (old section numbers such as 80C, 87A, 192), and Tax Year 2026-27, under the Income Tax Act, 2025 and Income Tax Rules, 2026 in force from 1 April 2026. Key changes: 80C→123, 87A→156, 192→392; Form 16→130; TDS uses payment codes 1001-1067. View full mapping →

Enter the dates for a TDS default to see the interest, and the quarter and filing date of a TDS statement to see the late fee. Interest is 1% a month from the date tax was deductible to the date it was deducted, and 1.5% a month from the date it was deducted to the date it was paid, where payment is after the due date. Part of a calendar month counts as a full month. The law is picked from the dates: the Income-tax Act, 1961 up to 31 March 2026 and the Income-tax Act, 2025 from 1 April 2026.

Income-tax Act, 1961 and Income-tax Act, 2025 compared

DefaultUp to 31 March 2026 (1961 Act)From 1 April 2026 (2025 Act)
Tax not deducted, or deducted lateSection 201(1A)(i): 1% a month or part, from the date deductible to the date deductedSection 398: same rate and period
Tax deducted but paid lateSection 201(1A)(ii): 1.5% a month or part, from the date deducted to the date paidSection 398: same rate and period
Statement filed lateSection 234E: ₹200 a day, not more than the TDSSection 427: same
Statement not filed or incorrectSection 271H: ₹10,000 to ₹1,00,000Section 461: same
  • Payment due dates: the 7th of the following month; tax deducted in March is due by 30 April.
  • Statement due dates: 31 July (Q1), 31 October (Q2), 31 January (Q3) and 31 May (Q4). From Tax Year 2026-27 the statements are Form 138 (salary), Form 140 (other resident payments) and Form 144 (non-residents), in place of Forms 24Q, 26Q and 27Q.
  • No penalty for delay where the TDS, interest and fee are paid and the statement is filed within one month of its due date (one year for statements due before 1 April 2025).
  • Payee has paid the tax: where TDS was not deducted but the payee has filed the return and paid tax on the income, interest at 1% runs only up to the date the payee filed the return, and the deductor is not treated as in default for the tax itself.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.

Frequently Asked Questions

What is the interest for late deduction or late payment of TDS?
Under Section 201(1A) of the Income-tax Act, 1961, interest is 1% a month or part of a month from the date tax was deductible to the date it was actually deducted, and 1.5% a month or part of a month from the date it was deducted to the date it was paid to the Government. From 1 April 2026, Section 398 of the Income-tax Act, 2025 provides the same rates. The interest must be paid before the TDS statement is filed.
How are months counted for TDS interest?
Part of a month is treated as a full month, and the TDS processing system counts calendar months. For example, tax deducted on 30 April and paid on 8 June, after the due date of 7 May, attracts interest for three months (April, May and June) at 1.5%, even though the delay is only 39 days.
What is the late fee for filing a TDS return after the due date?
A fee of Rs 200 is payable for every day of delay under Section 234E of the 1961 Act, or Section 427 of the 2025 Act for Tax Year 2026-27 onwards, until the statement is filed. The total fee cannot exceed the TDS amount in the statement. The fee is payable before the statement is filed, and the quarterly due dates are 31 July, 31 October, 31 January and 31 May.
When is a penalty levied for not filing a TDS statement?
The Assessing Officer may levy a penalty of Rs 10,000 to Rs 1,00,000 under Section 271H of the 1961 Act, or Section 461 of the 2025 Act, for not filing a TDS statement or filing incorrect details. No penalty is levied for a delay if the TDS, interest and late fee have been paid and the statement is filed within one month of the due date. Before 1 April 2025 this window was one year.
Is interest payable if the payee has already paid tax on the income?
If TDS was not deducted but the payee has included the income in the return and paid the tax on it, the deductor is not treated as in default for the tax itself, subject to a certificate from a chartered accountant in the prescribed form. Interest at 1% a month is still payable, from the date tax was deductible to the date the payee filed the return.

Due in the next 30 days

Income tax
  1. Tax Audit Report (Form 3CA/3CB with 3CD for FY 2025-26; Form 26 from Tax Year 2026-27)In 4 days · Income tax
  2. TDS / TCS deposit (e-Pay Tax, Challan ITNS 281) for SeptemberIn 11 days · Income tax

Full compliance calendar → Statutory dates, which can be extended by notification. General information only.

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