TDS Interest Calculator for Late Deduction and Deposit
Estimate interest at 1% per month or part for late deduction, or 1.5% per month or part for late government deposit. The applicable Act depends on when the TDS obligation arose.
Enter Details
Actual TDS deduction date, not the deposit due date
Actual government deposit/payment date; use this mode only after the applicable deposit due date has passed
Formula Used:
Interest = TDS Amount × 1.5% × Months
Estimated Interest
Important Note
This is an estimate: each calendar month or part touched by the delay counts. Late-deposit mode assumes the applicable deposit due date was missed; deposits made by that deadline do not attract late-deposit interest. The dates entered do not identify the governing Act: where the TDS provision uses payment or credit, check the earlier event; for salary, check the payment date. See the guidance below.
How to Use This Calculator
Select Default Type
Choose Late Deduction (1%) or Late Payment (1.5%)
Enter TDS Amount
Enter the TDS amount that was deducted or due
Enter Start Date
Date TDS was deductible for late deduction, or actually deducted for late deposit
Enter Actual Date
Date TDS was actually deducted or deposited with the government
Get Results
View estimated interest and total
TDS Interest Rates and Applicable Sections
For TDS provisions triggered by the earlier of payment or credit to the payee, use that earlier event to choose the Act. Salary TDS is triggered by payment, so use the salary payment date. If the relevant event occurred on or before 31 March 2026, the obligation remains under the Income-tax Act, 1961, even if TDS is deposited later; events on or after 1 April 2026 use the Income-tax Act, 2025. This calculator does not ask for the triggering event, so it cannot choose the Act for you. See the Income Tax Department's transition and interest-rate guidance and TDS compliance guidance.
Late Deduction
1961 Act: Section 201(1A)(i)
2025 Act: Section 398(3)(a)(i)
Interest at 1% per month or part applies when TDS is not deducted when required.
Period: From the date TDS was deductible to the date of actual deduction
Late Payment
1961 Act: Section 201(1A)(ii)
2025 Act: Section 398(3)(a)(ii)
Interest at 1.5% per month or part applies when deducted TDS is deposited late.
Period: From the date of deduction to the date of actual payment
Example Calculation
| Scenario | TDS Amount | Delay | Rate | Interest |
|---|---|---|---|---|
| Late Payment (3 months) | ₹50,000 | 3 months | 1.5% | ₹2,250 |
| Late Deduction (2 months) | ₹50,000 | 2 months | 1% | ₹1,000 |
| Ordinary monthly TDS: deducted 31 Jan; deposited 8 Feb after 7 Feb due date | ₹1,00,000 | 2 calendar months* | 1.5% | ₹3,000 |
* For ordinary monthly TDS, this deposit is late and touches January and February, counted as two calendar months for this estimate. Check your applicable deposit due date.
Frequently Asked Questions
What is the interest rate on late TDS payment?
Interest on late TDS payment is 1.5% per month or part thereof. This applies when TDS is deducted but not deposited to the government on time. The interest is calculated from the date of deduction to the date of actual payment. Part of a month is counted as a full month for calculation purposes.
What is the interest rate on late TDS deduction?
Interest on late TDS deduction is 1% per month or part thereof. This applies when the deductor fails to deduct TDS at the time of payment. The interest is calculated from the date when TDS should have been deducted to the actual date of deduction. Part of a month is considered as a full month.
How to calculate TDS interest for late payment?
For an estimate, multiply the TDS amount by 1.5% and by the number of calendar months or parts touched from the actual deduction date through the government deposit/payment date. For example, TDS of ₹10,000 deducted on 31 January and deposited on 1 March touches three months: ₹10,000 × 1.5% × 3 = ₹450.
Is TDS interest calculated on daily basis or monthly basis?
TDS interest is calculated per month or part, not per day. For this estimate, a delay within one calendar month counts as one month; a delay crossing into the next month counts both months. The interest is simple interest, not compound interest.
Which TDS interest sections apply before and after 1 April 2026?
For TDS provisions triggered by the earlier of payment or credit to the payee, use that earlier event; salary TDS uses the salary payment date. If the relevant event occurred on or before 31 March 2026, the Income-tax Act, 1961 Section 201(1A)(i) covers late deduction and Section 201(1A)(ii) covers late deposit. If the event occurred on or after 1 April 2026, the Income-tax Act, 2025 Section 398(3)(a)(i) and Section 398(3)(a)(ii) apply respectively. The rates remain 1% and 1.5% per month or part. A later deposit does not change the governing Act; this calculator cannot infer it from the entered dates.
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