TDS Late Payment Interest Calculator 2026 (Section 201(1A))

Section 201(1A) of the Income Tax Act 1961 imposes interest on TDS defaults: 1% per month for late deduction (from payment date to deduction date) and 1.5% per month for late deposit (from deduction date to deposit date). Interest is charged on a part-month basis — any fraction of a month counts as a full month. Additionally, Section 234E imposes a fee of ₹200 per day for late filing of TDS returns (Form 24Q, 26Q). Section 271C imposes a penalty of 100% of the TDS amount for failure to deduct TDS. This free calculator helps CA firms, tax consultants, and deductors compute the exact interest liability before making payment to the income tax department.

Enter TDS Details

TDS Section

TDS Amount (₹)

Date of Payment to Deductee

Date of TDS Deduction

Leave same as payment date if TDS was deducted on time.

Date of TDS Deposit to Govt

Fill in all fields above to see the interest calculation.

Section 234E — TDS Return Late Filing Fee

A fee of ₹200 per day is levied under Section 234E for delay in filing TDS/TCS returns (Form 24Q, 26Q, 27Q, 27EQ). The total fee cannot exceed the TDS amount. Enter the TDS return filing date in an extended version to calculate this fee.

Section 271C — Penalty for Non-Deduction of TDS

If TDS was not deducted at all, the Assessing Officer may impose a penalty equal to 100% of the TDS amount under Section 271C, in addition to the 201(1A) interest above.

Frequently Asked Questions

What is the interest rate for TDS late payment?▾

Under Section 201(1A), interest is charged at 1% per month (or part thereof) for late deduction of TDS, and 1.5% per month (or part thereof) for late deposit of TDS to the government. Part months count as full months.

What is Section 234E TDS late fee?▾

Section 234E imposes a late filing fee of ₹200 per day for delay in filing TDS/TCS returns (Form 24Q, 26Q, 27Q, 27EQ). The total fee cannot exceed the TDS/TCS amount.

What is the penalty for not deducting TDS?▾

Under Section 271C, the Assessing Officer can impose a penalty equal to 100% of the TDS amount if TDS was not deducted. This is in addition to Section 201(1A) interest.

How is TDS interest calculated for part months?▾

TDS interest is calculated on a monthly basis. Any part of a month counts as a full month. For example, 1 month and 5 days of delay counts as 2 months for interest calculation.

Is there any relief from TDS interest or penalty?▾

Under Section 273A, the Commissioner of Income Tax can waive or reduce penalty in genuine hardship cases. Interest under 201(1A) is generally not waivable but can be contested if the deductee has already paid the tax.

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