TDS Interest Calculator (Section 201(1A))

How do I calculate interest on a TDS challan paid late?

Interest runs at 1.5% per month or part of a month from the date the tax was deducted to the date it is actually deposited by challan. Because part of a month counts as a whole month and the count is by calendar month, tax deducted on 31 May and deposited on 8 July attracts three months of interest, not one. Enter the deduction date and the deposit date above and the calculator does the month count for you.

What does “amount of interest under section 201(1A)/206C(7) is payable” mean?

That wording pairs the two interest provisions that sit side by side on the tax payment screens and in departmental demands. Section 201(1A) covers interest where TDS was deducted or paid late, and Section 206C(7) is its counterpart for TCS collected or paid late, charged at 1% per month or part of a month. The prompt is simply asking you to compute and pay the interest along with the tax. This calculator computes the Section 201(1A) figure for TDS.

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.