TDS Interest Calculator
Calculate TDS interest and penalties for late deduction, payment, and filing
Calculate TDS Interest & Penalties
Amount of TDS tax involved in the calculation
Date when TDS should have been deducted
Date when TDS was actually deducted
Interest on Late Deduction Results
Formula: ₹0 × 1% × 0 months = ₹0
Important Notes
- • TDS should be deducted on the same day as the transaction
- • Interest is calculated from transaction date to deduction date
- • Any part of a month is considered a full month
Example Calculations
Late Deduction Example
Scenario: TDS of ₹10,000 should have been deducted on 15th April 2021
Actual deduction: 2nd May 2021
Calculation: ₹10,000 × 1% × 2 months = ₹200
Legal basis: Section 201A - 1% per month interest
Late Payment Example
Scenario: TDS of ₹10,000 deducted in April, due by 7th May
Actual payment: 12th May 2021
Calculation: ₹10,000 × 1.5% × 2 months = ₹300
Legal basis: Section 201(1A) - 1.5% per month interest
Late Filing Example
Scenario: Q3 return due on 31st January 2022, TDS amount ₹10,000
Actual filing: 15th March 2022 (43 days late)
Calculation: 43 days × ₹200 = ₹8,600
Legal basis: Section 234E - ₹200 per day (max = TDS amount)
TDS Payment Deadlines
TDS Interest Rates
Late Deduction
Per month from transaction date
Section 201A
Late Payment
Per month from due date
Section 201(1A)
Late Filing
Per day (max = TDS amount)
Section 234E
TDS Compliance Tips
Deduct TDS on the same day as transaction
Pay TDS by 7th of following month
File quarterly returns on time
Any part of month = full month interest
Late filing fee cannot exceed TDS amount
Understanding TDS Interest & Penalties
What is TDS?
Tax Deducted at Source (TDS) is a system where tax is deducted from the source of income itself. It's a way to collect tax at the time of payment rather than at the time of filing returns.
TDS Compliance Requirements
- •Deduct TDS on the same day as payment/transaction
- •Deposit TDS by 7th of the following month
- •File quarterly TDS returns within deadlines
- •Issue TDS certificates to deductees
Legal Sections & Penalties
Section 201A
Interest for late deduction of TDS at 1% per month
Section 201(1A)
Interest for late payment of TDS at 1.5% per month
Section 234E
Fee for late filing of TDS return at ₹200 per day
Important: Late compliance can result in significant penalties. Ensure timely deduction, payment, and filing to avoid interest charges.