TDS Interest Calculator (Section 201(1A))
Calculate interest on late deduction (1% per month) and late deposit (1.5% per month) of TDS under Section 201(1A).
How is interest on late TDS payment calculated?
Under Section 201(1A) of the Income Tax Act, interest is charged at 1% per month for late deduction — from the month the amount became deductible (paid or credited) to the month TDS was actually deducted. If the TDS is deducted in the same month it became deductible, no late-deduction interest applies.
A further 1.5% per month is charged for late deposit — from the month of deduction to the month the TDS is actually deposited with the government. Interest is computed for every month or part of a month, so any part of a month counts as a full month.
The TDS deposit due date is generally the 7th of the month following deduction (TDS deducted in March is due by 30 April). A deposit made on or before the due date is on time and attracts no interest. Always confirm the exact due dates and any relief on the official Income Tax portal.
Frequently asked questions
What is the interest rate for late deduction versus late deposit of TDS?
Interest is 1% per month for late deduction of TDS and 1.5% per month for late deposit of TDS, both under Section 201(1A) of the Income Tax Act.
What does "month or part of a month" mean?
Interest is charged for every month or part of a month, so even a single day's delay into a new month counts as a full month. This calculator counts calendar months and always includes the starting month.
What is the due date for depositing TDS?
TDS is generally to be deposited by the 7th of the month following the month of deduction. TDS deducted in March is an exception and is due by 30 April.
Is interest under Section 201(1A) the same as the Section 234E late filing fee?
No. Section 201(1A) interest is for late deduction or late deposit of TDS, while Section 234E charges a separate late filing fee of ₹200 per day for filing the TDS return late. They are charged independently of each other.
Can interest on late TDS be waived?
Generally no. Interest under Section 201(1A) is mandatory and compensatory in nature, so it is not waived even if the delay was unintentional.
How is interest different from penalty under Section 271C?
Interest under Section 201(1A) is an automatic charge for the period of delay. A penalty under Section 271C is a separate consequence for failure to deduct or pay TDS, can be up to the amount of TDS, and is levied by the tax authorities — it is not the same as interest.
Is this calculator a substitute for official figures?
It gives a close estimate using the calendar-month convention. Some ITAT rulings apply a stricter 30-day month, so confirm the exact dates and final liability on incometax.gov.in.