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TDS Interest Calculator (Section 201)

Calculate interest on late deduction (1% per month) and late payment (1.5% per month) under Income Tax Section 201(1A).

₹

Section 201(1A)(i) — 1% per month or part.

Section 201(1A)(ii) — 1.5% per month or part.

Section 234E — ₹200 per day, capped at the TDS amount.

Interest for late deduction
₹0
1% × 0 month(s)
Interest for late payment
₹2,250
1.5% × 3 month(s)
Late filing fee
₹0
₹200 × 0 days
Total payable
₹52,250
TDS ₹50,000 + ₹2,250

How this is calculated

Interest is charged for a month or part of a month, so a single day of delay attracts a full month's interest.

201(1A)(i): ₹50,000 × 1% × 0 = ₹0

201(1A)(ii): ₹50,000 × 1.5% × 3 = ₹2,250

TDS Interest Calculator (Section 201): how it works

Section 201(1A) charges two different interest rates for two different failures, and a month or part of a month counts as a full month.

Two separate interest charges

FailureSectionRate
Did not deduct TDS when required201(1A)(i)1% per month
Deducted but did not deposit201(1A)(ii)1.5% per month

The 234E late filing fee

Late fee = ₹200 per day of delay

Capped at the amount of TDS itself

This is a fee, not a penalty, which means it cannot be waived on reasonable cause. It applies from the due date of the quarterly statement until it is actually filed.

Worked example

Worked example · ₹50,000 TDS deposited three months late, return 30 days late

Given

  • TDS amount: ₹50,000
  • Late deposit: 3 months
  • Late filing: 30 days

Working

  1. 1Interest 201(1A)(ii) = 50,000 × 1.5% × 3 = ₹2,250
  2. 2Late fee 234E = 200 × 30 = ₹6,000
  3. 3Total additional liability = 2,250 + 6,000

Pay ₹58,250 in total against a ₹50,000 obligation

Note that the late filing fee here exceeds the interest by a wide margin. Filing the statement on time matters more than depositing on time, in pure rupee terms.

Due dates

QuarterTDS depositStatement filing
Apr–Jun7th of following month31 July
Jul–Sep7th of following month31 October
Oct–Dec7th of following month31 January
Jan–Mar30 April31 May

Based on

  • Income Tax Act, sections 201(1A), 234E and 271H

Frequently asked questions

1.5 percent per month under section 201(1A)(ii) if you deducted but did not deposit, and 1 percent per month under 201(1A)(i) if you failed to deduct at all.

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