TDS interest and late fee calculator
Interest for late deduction or deposit, and the ₹200-a-day late fee for TDS/TCS statements — 1961 and 2025 Acts.
✓Checked against the official Act and rules · verified 28 October 2026
What does the TDS delay cost?
Interest for late deduction or late deposit
Late fee for the quarterly TDS / TCS statement
How it works
- Late deduction: 1% for every month or part of a month, from the date tax was deductible to the date it was actually deducted. Section 201(1A)(i) of the 1961 Act; section 398(3)(a)(i) of the 2025 Act.
- Late deposit: 1.5% for every month or part of a month, from the date tax was deducted to the date it was paid. Section 201(1A)(ii); section 398(3)(a)(ii) of the 2025 Act. No interest if deposited by the due date.
- Late statement fee: ₹200 for every day of delay, not more than the TDS/TCS amount in the statement. It must be paid before the statement is filed. Section 234E; section 427 of the 2025 Act.
- Penalty of ₹10,000 to ₹1,00,000 may also apply for late or incorrect statements (section 271H; section 461 of the 2025 Act). No penalty under 271H if tax, fee and interest are paid and the statement is filed within one month of the due date.
Common questions
What is the interest for late payment of TDS?
1.5% per month or part of a month, from the date the tax was deducted to the date it is deposited. If tax was not deducted on time, 1% per month applies from the date it was deductible to the date it is deducted.
What is the late fee for a TDS return?
₹200 for every day of delay, up to the total TDS in that statement. It is payable before the statement can be filed.
Which section applies from 1 April 2026?
For tax year 2026-27, interest is under section 398(3)(a) and the late fee under section 427 of the Income-tax Act, 2025. The rates are the same: 1%, 1.5% and ₹200 a day.
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