TDS Late Payment Penalty Calculator

Calculate interest u/s 201(1A) and late fees u/s 234E.

Missed your TDS deadlines? The Income Tax Department charges severe compound penalties for late deduction (1% per month) and late deposit (1.5% per month) along with ₹200/day for late filing. Enter your exact dates below to calculate your total liability instantly.

Calculate Penalties | Penalty Rules | FAQs

1. Deduction Details

₹

2. Deposit Details

We will automatically calculate the due date based on your deduction date.

3. Return Filing Details (Optional)

Leave blank if you haven't filed yet or if not applicable.

Total Payable Summary

Total Amount to be Paid

₹0
Principal + Interest + Late Fees

Original TDS Amount

The principal amount deducted

₹0

Late Deduction Interest (1%)

Delayed by 0 month(s)

₹0

Late Deposit Interest (1.5%)

Delayed by 0 month(s)

₹0

Late Filing Fee (Sec 234E)

₹200/day for 0 day(s)

₹0

Note on IT Act Rules

As per Income Tax rules, a fraction of a month is considered a full month. For example, if you delay deposit by just 1 day into the next calendar month, interest for 2 full months is charged. The 234E late fee is capped at the total TDS amount.

Understanding TDS Late Payment Penalties

1. Interest on Late Deduction (1%)

Under Section 201(1A), if a deductor fails to deduct TDS on the date it was actually supposed to be deducted (e.g., date of crediting the party or making payment), an interest of 1% per month or part of a month is levied.

Calculation Period: From the date TDS was deductible up to the date it was actually deducted.

2. Interest on Late Deposit (1.5%)

Once TDS is deducted, it must be deposited to the government by the 7th of the following month. If delayed, interest of 1.5% per month or part of a month is levied.

Calculation Period: From the exact date of deduction up to the exact date of actual deposit. (Not from the due date).

The "Part of a Month" Trap (Worked Example)

The Income Tax Department calculates interest based on calendar months touched, not flat 30-day periods. This means a 1-day delay can trigger a 2-month interest penalty.

  • Scenario: You deduct TDS on 31st May. The due date to deposit is 7th June.
  • Mistake: You deposit it on 8th June (1 day late).
  • Penalty: The deposit touched two calendar months (May and June). Therefore, 1.5% x 2 months = 3% penalty is levied on the entire TDS amount.

3. Section 234E Late Filing Fee

Apart from depositing the tax, you must file a quarterly TDS return (Form 24Q, 26Q, etc.). Section 234E enforces a flat late fee of ₹200 per day for every day of delay until the return is filed. The total late fee cannot mathematically exceed the original TDS amount for that quarter.

Frequently Asked Questions

Is there any grace period for TDS deposit?
No, there is absolutely no grace period. If the due date is the 7th of the month and you pay on the 8th, the penalty for late deposit will be calculated retrospectively from the actual date of deduction.
Can I claim TDS interest as a business expense?
No. The Income Tax Act expressly disallows claiming any interest or penalty paid under Section 201(1A) or 234E as a deductible business expense. It must be paid out of your own net profits.
What if the due date falls on a Sunday or Bank Holiday?
If the 7th (or the specific due date) falls on a public holiday or a Sunday, you are allowed to deposit the TDS on the immediately next working day without attracting any penalty.
How is the month calculated if I deduct on 30th April and deposit on 5th May?
If you deposit by the due date (which is 7th May for April deductions), NO interest is applicable. The 1.5% interest only kicks in if you cross the due date. Once you cross it, the interest is calculated from April backwards.
What is Section 271H Penalty?
If a deductor delays filing the TDS return for more than one year from the original due date, or provides incorrect information, the Assessing Officer can levy an additional penalty ranging from ₹10,000 to ₹1,00,000.
6. Do I need to file an ITR if my income is below the basic exemption limit?
Usually no, but you must file if you paid TDS and want a refund, or if you meet certain criteria like spending over ₹2 Lakhs on foreign travel or depositing over ₹1 Crore in a current account.
7. What is the difference between Old and New Tax Regime?
The Old Regime allows deductions like 80C, 80D, HRA, etc., while the New Regime has lower slab rates but does not allow most deductions. From FY 2025-26, the New Regime is the default.
8. Can I switch back to the Old Tax Regime?
Salaried individuals can choose between the regimes every year. However, individuals with business income can switch only once in their lifetime.

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