TDS and income taxCalculator
TDS Late Payment Interest Calculator
Work out the interest on TDS that was deducted late, deposited late, or both: 1% a month until it is deducted and 1.5% a month until it is deposited.
If the tax was deducted on time, enter the same date as the date it was deductible.
Enter the TDS amount and the three dates to see the interest.
How it is calculated
- Interest for late deduction = TDS × 1% × the months from the date the tax was deductible to the date it was deducted.
- Interest for late deposit = TDS × 1.5% × the months from the date it was deducted to the date it was deposited.
- Each month or part of a month counts as a whole month, so 7 April to 8 May is 2 months.
Example. TDS of ₹10,000 that should have been deducted on 7 April, was deducted on 20 May (2 months at 1%: ₹200) and deposited on 3 August (3 months at 1.5%: ₹450) carries ₹650 of interest.
Rules and sources
Rules last checked on October 19, 2026
This is an illustrative calculation for general guidance, not professional advice. Rates and limits change by notification, so confirm the applicable law before you rely on a figure.
Frequently asked questions
What is the interest rate on late TDS?
Interest is 1% a month (or part of a month) on tax that was deductible but not deducted, from the date it was deductible to the date it was deducted, and 1.5% a month (or part) on tax that was deducted but not deposited, from the date of deduction to the date of deposit.
How is a part of a month counted?
As a whole month. Tax deducted on 7 April and deposited on 8 May is 2 months late for the interest, not 1 month and a day.
Is there a late fee as well?
Filing the TDS statement late has its own fee of ₹200 a day under section 234E, which the TDS statement late fee calculator works out. Penalties are separate and are not calculated here.
Do these section numbers still apply?
They are the sections of the Income-tax Act, 1961. The Income-tax Act, 2025 applies from 1 April 2026 with new section numbers, so confirm the rate and the provision for the period of your default.