TDS Late Deduction / Late Deposit Interest & 234E Fee Calculator
Missing a TDS deadline is expensive because the interest is calculated per month or part of a month — even a one-day delay that crosses a month boundary attracts a full month's interest. This calculator computes the three statutory consequences of TDS defaults: interest for late deduction, interest for late deposit, and the late filing fee for the quarterly TDS return.
Interest u/s 201(1A)
- Late deduction: 1% per month from the date on which tax was deductible to the date it was actually deducted.
- Late deposit: 1.5% per month from the date of deduction to the date of deposit with the Government.
Months are counted on a calendar basis. TDS deducted on 30 April and deposited on 2 June covers April, May and June — three months — so interest is 4.5% of the TDS amount even though the delay is barely over a month.
Due dates
TDS must be deposited by the 7th of the month following deduction; tax deducted in March can be deposited by 30 April. Quarterly statements (24Q, 26Q, 27Q) are due on 31 July, 31 October, 31 January and 31 May.
Fee u/s 234E
₹200 per day of delay in filing the TDS statement, capped at the amount of TDS in that statement. This fee must be paid before the return can be filed. A further penalty u/s 271H of ₹10,000 to ₹1,00,000 can be levied if the return is more than one year late or contains incorrect details.
Worked example
TDS of ₹25,000 was deductible on 10 April 2026, deducted the same day, but deposited only on 12 June 2026. Due date was 7 May. Late deposit interest = 25,000 × 1.5% × 3 months (April, May, June) = ₹1,125. If the Q1 return (due 31 July) is filed on 20 August, the 234E fee = 20 days × ₹200 = ₹4,000. Total outgo: ₹25,000 + ₹1,125 + ₹4,000.
Interest and fee are paid through Challan 281 with the relevant section code, and are not deductible as business expenditure.
Frequently Asked Questions
How are months counted for TDS interest?
Any part of a month counts as a full month, and counting is by calendar month from the month of deduction (or deductibility) to the month of deposit inclusive. Deducting on the last day of a month and depositing on the 8th of the next month means two months of interest.
What is the interest rate for late deposit of TDS?
1.5% per month or part thereof under section 201(1A)(ii), from the date of deduction to the date of deposit. Late deduction attracts 1% per month.
Is the 234E fee capped?
Yes. The fee of ₹200 per day cannot exceed the total TDS deductible in that quarterly statement.
Can TDS interest be waived?
No, interest u/s 201(1A) is mandatory and cannot be waived. Only the 271H penalty is discretionary and can be avoided if the TDS, interest and fee are paid and the return filed within one year of the due date.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.