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University · Calculators

TDS Interest & Late Fee Calculator.

Three separate meters run on a TDS default: 1% a month for deducting late, 1.5% a month for depositing late — each on the month-or-part rule that makes a two-day slip cost two months — and ₹200 a day for filing the return late, capped at the TDS itself.

Inputs
TDS amount (₹)
Date tax was deductible (credit/payment)
Date actually deducted
Deposit due date
7th of the next month; 30 April for March deductions
Date actually deposited
Return due date
31 Jul / 31 Oct / 31 Jan / 31 May (Forms 138/140)
Return filed on
Result
Late-deduction months (or part)0
Interest @ 1% — late deduction₹0
Late-deposit months (or part)5
Interest @ 1.5% — late deposit₹3,750
Return delay (days)20
Late-filing fee (₹200/day, capped at TDS)₹4,000
Total default cost₹7,750
Beyond interest
Where tax was deducted but not deposited by the return-filing due date, 30% of the expense faces disallowance under Sec 40(a)(ia) (allowed in the year of deposit), and the deductor risks assessee-in-default and prosecution exposure on long delays. Interest here is the floor, not the bill.

Why two-day delays cost two months.

The interest runs per “month or part of a month” — counted by calendar months touched, not 30-day blocks. Deduct on 30 April and deposit on 8 June, and the 1.5% meter touches April-to-June ends: three months of interest for a 39-day delay is the standard surprise. This calculator applies the calendar-month-touch convention; the Department’s TRACES computation follows the same logic.

TDS rate finder FY 2026-27Forms 138/140 guide

How TDS default interest works

Two interest meters under the old Sec 201(1A): 1% per month or part of a month from the date the tax was DEDUCTIBLE to the date it was DEDUCTED, then 1.5% per month or part from the date of DEDUCTION to the date of DEPOSIT. The rates differ because the second failure — holding government money — is treated as the graver one.

"Month or part" is counted on calendar months touched. A deposit due 7 May made on 8 June spans May and June — and because interest runs from the deduction date (say 30 April), April counts too. Practitioners reconcile to TRACES numbers by this convention, not day-counting.

The late-FILING fee is separate: ₹200 for every day the quarterly statement (Forms 138/140 from FY 2026-27; 24Q/26Q earlier) is delayed, capped at the TDS amount in the statement. Interest and fee stack — and neither is deductible as business expenditure.

Worked example — ₹50,000 TDS, deposited 5 August

Rent TDS of ₹50,000 deducted on 30 April 2026 (due for deposit 7 May) is deposited on 5 August 2026. The Q1 Form 140 (due 31 July) is filed on 20 August.

Inputs
Late deductionNone — deducted on time
Deposit delay monthsApr → Aug = 5 months (or part)
Interest @ 1.5%₹50,000 × 1.5% × 5 = ₹3,750
Return delay20 days × ₹200 = ₹4,000
Output
Total default cost₹7,750
As % of the TDS15.5%
40(a)(ia) exposureNone — deposited before the return due date u/s 139(1)
A three-month deposit slip costs five interest-months because the count runs from the deduction date and touches five calendar months. The filing fee nearly matches the interest — the two meters are independent.

Common mistakes

Day-counting instead of month-touching
Interest is per calendar month or part touched, from the deduction date. Spreadsheets that compute days/30 systematically understate against the TRACES demand.
Starting the 1.5% clock at the due date
The late-deposit interest runs from the date of DEDUCTION, not the 7th-of-next-month due date. A deposit one day past due still carries interest from the deduction month.
Forgetting the fee cap works per statement
The ₹200/day fee caps at the TDS amount IN THAT statement. Nil-TDS statements attract no fee; small-TDS statements cap quickly; big statements can run the meter for months.
Treating interest and fee as deductible
Neither 201(1A) interest nor the late-filing fee is allowable as business expenditure. Both belong in the tax-disallowance schedule, and the tax audit reports the delays in the clause 34 tables.
Missing the March exception
March deductions get until 30 April for deposit (non-government deductors) — but April counts in the month arithmetic the moment it is touched by a delay beyond that.

Frequently asked questions

What is the interest for late deposit of TDS?+
1.5% per month or part of a month, computed from the date of deduction to the date of deposit (old Sec 201(1A); the equivalent machinery continues under the Income Tax Act 2025). Late deduction separately costs 1% per month from the date deductible to the date deducted.
What is the late fee for TDS return filing?+
₹200 per day of delay, capped at the TDS amount reported in the statement — applicable to Forms 138/140 (and the old 24Q/26Q for earlier periods). A penalty can additionally apply for delays beyond a year or incorrect information.
Is TDS interest calculated in days or months?+
Months — "month or part of a month", counted on calendar months touched. Even one day into a new calendar month adds a full month of interest, which is why short slips around month-ends cost disproportionately.
What is the due date for depositing TDS?+
The 7th of the month following deduction for most deductors, with March deductions due by 30 April. Government deductors and quarterly-permission cases follow their own schedule.
Does late deposit also trigger expense disallowance?+
If tax deducted is not deposited by the due date for filing the return of income u/s 139(1), 30% of the expense is disallowed under Sec 40(a)(ia) and allowed in the year of deposit. The tax audit reports the default in Form 3CD clause 34 either way.

Authoritative sources

Sec 201(1A) + Sec 234E, Income-tax Act 1961 (machinery continued under the IT Act 2025) — Rates verified 18 July 2026. For FY 2026-27 documents cite the Income Tax Act 2025 equivalents via the section mapper.
Always confirm against the latest version of the source. Regulations evolve and amendments are common.
Related calculators
TDS rate finder FY 2026-27 →Forms 138/140 guide →IT Act 2025 section mapper →TDS reconciliation module →
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Last reviewed: 2026-07-18 · For informational purposes only — not professional advice.