TDS interest, to the day.
Enter three dates and both interest limbs are worked out for you — 1% for late deduction, 1.5% for late deposit — using the calendar-month convention the department applies, where a single day late costs two months.
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Enter the TDS amount and dates, then click Calculate Interest & Fee.
Why there is one form here, not two modes
Late deduction and late deposit are two independent failures. They can happen separately or together, so asking you to choose between them was the wrong question — and it made under-reporting easy.
The three dates you enter fully describe what happened, and each limb switches itself on only if its own condition is met:
If you deducted on time, set dates 1 and 2 to the same day and the 1% limb computes to nil on its own. Nothing to select, and no way to pick the wrong mode and understate what you owe.
Rule one — part of a month is a whole month
Interest is not pro-rated by days. The department counts calendar months from the month of deduction to the month of deposit, both inclusive. Tax deducted on 25 June and deposited on 8 July touches two calendar months, so two months of interest apply even though the delay was a single day past the deadline.
Rule two — interest runs from deduction, not from the due date
Once you miss the deadline, interest is computed from the date you deducted the tax, not from the date it fell due. There is no partial relief for being nearly on time.
On ₹50,000 deducted 25 June, depositing on 7 July costs nothing. Depositing on 8 July costs ₹1,500. That cliff edge is the single most expensive detail in TDS compliance.
Due dates
- Deposit: 7th of the following month for April to February deductions; 30 April for March deductions.
- Returns: 31 July, 31 October, 31 January and 31 May for Q1 to Q4 respectively.
- Certificates: within 15 days of the return due date.
What each default costs
| Default | Charge | Period it runs for |
|---|---|---|
| Failure to deduct | 1% per month | Date tax was deductible → date of actual deduction |
| Failure to deposit | 1.5% per month | Date of deduction → date of deposit |
| Late return filing | ₹200 per day | Day after the return due date, capped at the TDS in that return |
| Return unfiled beyond a year | ₹10,000 – ₹1,00,000 | Penalty, in addition to the fee above |
| Non-deduction on an expense | 30% disallowed | Reversed in the year the TDS is finally deposited |
Return forms and due dates
| Reports | Old form | New form | Quarter | Due date |
|---|---|---|---|---|
| TDS on salary | 24Q | Form 138 | Q1 · Apr–Jun | 31 July |
| TDS, non-salary residents | 26Q | Form 140 | Q2 · Jul–Sep | 31 October |
| TDS, non-residents | 27Q | Form 144 | Q3 · Oct–Dec | 31 January |
| TCS | 27EQ | Form 143 | Q4 · Jan–Mar | 31 May |
Old forms remain correct for any transaction where the earlier of credit or payment fell on or before 31 March 2026, so you will be filing on both sets for several quarters yet.
Questions people ask
What is the interest rate on late payment of TDS?
Two different rates apply under Section 201(1A), and both can apply to the same transaction. Failure to deduct on time attracts 1% per month from the date the tax was deductible to the date it was actually deducted. Failure to deposit tax that was deducted attracts 1.5% per month from the date of deduction to the date of deposit. Any part of a month counts as a full month.
Why does one day of delay cost two months of interest?
Because interest runs from the date of deduction rather than from the due date, and part of a month counts as a whole month. Tax deducted on 25 June is due by 7 July. Deposit it on 8 July and interest runs across both June and July, giving two months at 1.5%, or 3% of the tax. Depositing on 7 July costs nothing at all.
What is the due date for depositing TDS?
For deductions made from April to February, the 7th of the following month. For deductions made in March, 30 April. Different rules applied to property and rent deductions by individuals under the old Sections 194-IA, 194-IB and 194M, where the deadline was 30 days from the end of the month of deduction.
How is the Section 234E late filing fee calculated?
Two hundred rupees for every day the quarterly return is late, running from the day after the due date until the return is actually filed. The fee cannot exceed the total TDS reported in that return. It is a fee rather than a penalty, so it cannot be waived on reasonable cause and must be paid before the return can be filed.
What are the new TDS section numbers for FY 2026-27?
The Income-tax Act 2025 replaced the 1961 Act from 1 April 2026. Salary TDS, previously Section 192, is now Section 392. The whole 194-series is consolidated into Section 393 with numeric payment codes. TCS moves to Section 394. The Income Tax Department has confirmed that quoting old section numbers such as 194C or 194J for post-April transactions can produce system-level validation errors.
Which Act applies if I credited in March but paid in April?
The 1961 Act. The test is the earlier of credit or payment, not the date you deposit the tax. If you credited the party on 28 March 2026 and paid on 5 April 2026, the earlier event falls in March, so the old section codes and old forms apply even though the challan is deposited in April.
Can Section 201(1A) interest be waived?
No. The interest is compensatory and mandatory, so reasonable cause is not a defence. It must also be paid before the quarterly return is filed, since the return will not validate otherwise. Separately, a penalty of Rs 10,000 to Rs 1,00,000 under Section 271H may apply where a return remains unfiled beyond a year.
What happens if I never deducted TDS at all?
Beyond the 1% monthly interest, 30% of the expenditure is disallowed under the provision corresponding to Section 40(a)(ia), which raises taxable profit. The disallowance reverses in the year the TDS is eventually deposited. If the payee has already included the amount in their return and paid tax on it, the deductor is not treated as an assessee in default, but interest still runs until the date the payee filed.