Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Estimate 1%/1.5% monthly interest and section 234E statement fee from actual deduction, deposit and filing dates.
Estimate TDS delay interest and statement fee
Indicative exposure
Interest is charged for every month or part of a month; section 234E fee is ₹200 per day, capped at TDS/TCS amount.
Interest
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Statement late fee
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Component
Amount
Interest for late deduction
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Interest for late deposit after deduction
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Total indicative exposure
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Income-tax Act, 2025 note: Section 234E (late-filing fee for TDS/TCS statements) is renumbered as Section 427 under the Income-tax Act, 2025, effective FY 2026-27. Section 201(1A) (interest for late deduction/deposit of TDS) falls within the Act's consolidated TDS block (Sections 393-402), but we could not verify its exact clause number from a reliable source at the time of writing — check the current Income-tax Act, 2025 or a CA before citing a specific section for 201(1A) interest for FY 2026-27 onward.
How This Is Calculated
Under Section 201(1A), interest for late deduction of TDS is charged at 1% per month (or part of a month) from the date TDS was deductible until the date it was actually deducted. Interest for late deposit of already-deducted TDS is charged at a higher 1.5% per month (or part of a month), from the date of deduction until the date of actual payment to the government. A part of a month is counted as a full month for this calculation.
Frequently Asked Questions
What is the interest rate for late TDS deduction?
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Under Section 201(1A), interest for deducting TDS late (after the amount became due but before actual deduction) is 1% per month or part of a month.
What is the interest rate for late TDS deposit?
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Interest for depositing already-deducted TDS late to the government is 1.5% per month or part of a month — higher than the late-deduction rate, since the deductor has already collected the tax but hasn't remitted it.
How is a "part of a month" counted for TDS interest?
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Any part of a calendar month, even a single day of delay, is counted as a full month for interest calculation purposes. A delay of 32 days, for instance, is treated as 2 months, not roughly 1 month.
Is there a separate late-filing fee for TDS returns?
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Yes. Beyond interest on the TDS amount itself, a late fee of ₹200 per day (under Section 234E) applies for delayed filing of the TDS return, capped at the TDS amount deductible for that quarter.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
Scope: Computes interest and late-filing fee for delayed TDS deposit or delayed TDS return filing, from the deductor's perspective.
Calculation logic
Interest for late deduction (Section 201(1A)): 1% per month (or part of a month) from the date TDS was deductible until the date it was actually deducted.
Interest for late deposit (Section 201(1A)): 1.5% per month (or part of a month) from the date TDS was deducted until the date it was actually deposited with the government.
Late fee for delayed TDS return filing (Section 234E): ₹200 per day of delay, capped at the TDS amount deductible for that quarter.
Inputs and assumptions
Interest is computed on a per-month (or part-month) basis as prescribed — even a single day into a new month counts as a full month for this computation, per the statutory convention, which the calculator applies.
The two interest rates (1% for late deduction, 1.5% for late deposit) are cumulative where both delays occur — the calculator computes each component separately using its own date range.
Exclusions and edge cases
Does not compute the penalty under Section 271H (for incorrect/non-filing of TDS returns beyond the fee period) — that is a discretionary penalty assessed by the assessing officer, not a formulaic calculation.
This is an estimation tool for the deductor's own planning; the actual demand raised by the TRACES/TDS-CPC system on processing the TDS return is the authoritative figure.