TDS Late Filing Penalty & Interest | How Much Will It Cost?

A late TDS return doesn't carry just one cost — it can trigger up to three separate liabilities depending on what exactly was late: the return itself, the tax payment, or both.

The Three Possible Costs

Section 234E late filing fee — ₹200/day for late filing of the return, capped at the TDS amount. Use our Late Filing Fee Calculator to compute this instantly.
Section 201(1A) interest — 1% or 1.5% per month for late deduction or late deposit of the tax itself. Use our Late Payment Interest Calculator for this.
Section 271H penalty — a discretionary ₹10,000–₹1,00,000 penalty if the return is filed more than a year late or contains incorrect information.

Why This Adds Up Fast

These three aren't mutually exclusive — a return filed 60 days late, where the tax itself was also deposited late, can attract both the 234E fee and 201(1A) interest simultaneously. The most reliable way to avoid all three is automated due-date tracking so filings never slip past their deadline in the first place.

Frequently Asked Questions

What is the late filing fee under Section 234E?

₹200 for every day of delay in filing the TDS/TCS return, capped at the TDS/TCS amount for that quarter.

Is interest the same as the late filing fee?

No — interest under Section 201(1A) is for late deduction/deposit of tax, while the Section 234E fee is specifically for late filing of the return.

Can both a late fee and a penalty apply together?

Yes — the Section 234E fee and a Section 271H penalty are independent and can both apply if the return is filed very late.

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TDS Late Filing Penalty & Interest: How Much Will It Cost You?