TDS Interest Calculator
for Late Deduction, Late Deposit and 234E
Interest under Section 201(1A) is counted by calendar month, not by days, which is why a one-day delay can cost two months of interest. Enter the dates and the calculator applies the same convention TRACES does.
For estimation only. The final figure is the one raised in the TRACES justification report or intimation for the statement.
Rated by CA firms on
Total interest
₹0
Enter the amount and dates to begin.
Late deduction @ 1%
Late deposit @ 1.5%
Both components run on the full TDS amount. Interest is rounded to the nearest rupee here; TRACES computes on the amount rounded to the nearest ₹100 under Rule 119A, so small differences are normal.
Late Filing Fee for the TDS Statement
₹200 a day from the statement due date to the date of filing, limited to the TDS in that statement. Paid before filing; no waiver.
234E fee payable
₹0
Pick the quarter and filing date.
TDS Deposit and Return Due Dates
Deposit by the 7th of the following month, except March, which goes to 30 April. Statements are quarterly; certificates follow fifteen days behind.
| Quarter | Statement | Due date | Certificate |
|---|---|---|---|
| April to June (Q1) | 24Q / 26Q / 27Q | 31 July | Form 16A by 15 August |
| July to September (Q2) | 24Q / 26Q / 27Q | 31 October | Form 16A by 15 November |
| October to December (Q3) | 24Q / 26Q / 27Q | 31 January | Form 16A by 15 February |
| January to March (Q4) | 24Q / 26Q / 27Q | 31 May | Form 16 / 16A by 15 June |
Form 27EQ (TCS) is due fifteen days earlier each quarter: 15 July, 15 October, 15 January and 15 May. Forms 26QB, 26QC and 26QD are challan-cum-statements due within 30 days from the end of the month of deduction.
Why one day late became ₹1,000 of interest
A client credits a contractor's bill of ₹10,00,000 on 30 January, so ₹20,000 of TDS is deductible that day. The accountant books the entry on 3 February and deducts then. The challan is paid on 8 March, one day after the 7 March due date.
Late deduction: 30 January to 3 February touches January and February. Two months at 1% on ₹20,000 is ₹400.
Late deposit: 3 February to 8 March touches February and March. Two months at 1.5% on ₹20,000 is ₹600.
Total interest ₹1,000 on a payment that was, in the client's mind, "a day late". Had the entry been booked on 30 January and the challan paid by 7 March, both components would have been nil.
The lesson for a practice is that TDS interest is driven by month boundaries. A deposit on the 7th costs nothing; a deposit on the 8th costs two months. Reminders that land on the 4th or 5th, not the 7th, are what keep clients on the right side of the line.
TDS Interest and Late Fee: FAQs
What is the interest rate for late payment of TDS?
Section 201(1A) has two rates. If tax was deducted late, interest is 1% per month or part of a month from the date it should have been deducted to the date it was actually deducted. If tax was deducted but deposited late, interest is 1.5% per month or part of a month from the date of deduction to the date of deposit. The two can apply together on the same amount if both events happened.
Why is interest charged for two months when I was only a day late?
Because the law says "month or part of a month", and the department counts calendar months, not thirty-day blocks. Tax deducted on 30 January is due by 7 February. If it is deposited on 8 February, the period from 30 January to 8 February touches two calendar months, January and February, so interest is 1.5% × 2 = 3% of the TDS amount. This is the single most common surprise in TDS interest and it has been upheld in several tribunal decisions. The calculator follows this convention.
When is TDS due for deposit?
For non-government deductors, tax deducted in any month is due by the 7th of the following month, except tax deducted in March, which is due by 30 April. TDS on property purchases (194-IA), rent by individuals (194-IB) and contractor or professional payments by individuals (194M) is due within 30 days from the end of the month of deduction, paid with the challan-cum-statement itself.
What is the late filing fee under Section 234E?
₹200 for every day the quarterly TDS or TCS statement (Form 24Q, 26Q, 27Q, 27EQ) is late, from the due date until the day it is filed. The fee cannot exceed the amount of TDS or TCS in that statement. It has to be paid before the statement is filed and there is no provision for waiver; even a genuine reason does not remove it, unlike a penalty.
What are the due dates for TDS returns?
April to June quarter: 31 July. July to September: 31 October. October to December: 31 January. January to March: 31 May. These are for the TDS statements. Form 16 for salary is due by 15 June, and Form 16A for the quarter is due within 15 days of the statement due date.
Is there a penalty on top of the 234E fee?
Section 271H allows a penalty of ₹10,000 to ₹1,00,000 for failing to file a statement, or for filing one with incorrect PAN or amounts. It is not levied if the statement is filed within one year of the due date and the tax, interest and 234E fee have been paid. Separately, Section 40(a)(ia) disallows 30% of an expense on which TDS was not deducted or not deposited by the return filing date, which for many clients is the far bigger number.
Is TDS interest deductible as a business expense?
No. Interest under Section 201(1A) is compensatory in nature but courts have consistently held it is not an allowable deduction, and the 234E fee is likewise not deductible. Both come straight out of the client's pocket.
How do CA firms keep TDS deposits and returns from slipping?
The 7th and the quarter-end statements are the same every month and every quarter, which makes them the easiest deadlines to systematise and the easiest to lose in a busy month. QwikCA creates the deposit and return tasks for every client automatically, shows what is pending on one board, and sends the client a reminder for challans and data before the date. It tracks the deadline; it does not prepare or file the return.
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Auto-recurring tasks in QwikCA
How monthly TDS deposit and quarterly statement tasks get created for every client on their own.
All tools are listed on the free tools for CA firms page.
Never let the 7th slip again
QwikCA creates the TDS deposit and quarterly statement tasks for every client automatically, and reminds them for challans and data days before the due date. Free for a month, no card needed.