Work out interest on late TDS deduction or deposit and the ₹200/day late filing fee in seconds — with due dates for Tax Year 2026-27 and earlier years built in.
Section 398(3)(a) of the Income-tax Act, 2025 (old Section 201(1A)) — 1% per month for late deduction, 1.5% per month for late deposit.
Enter the TDS amount and dates, then click Calculate interest.
When TDS is deducted late or deposited late, the deductor owes interest under Section 398(3)(a) of the Income-tax Act, 2025, which carries forward old Section 201(1A). The interest has two independent legs, and this calculator works out both:
| Default | Rate | Period | Old / new section |
|---|---|---|---|
| TDS not deducted (or deducted late) | 1% per month or part | From the date TDS was deductible to the date actually deducted | 201(1A)(i) / 398(3)(a)(i) |
| TDS deducted but not deposited by the due date | 1.5% per month or part | From the date of deduction to the date of deposit | 201(1A)(ii) / 398(3)(a)(ii) |
₹20,000 TDS on a professional fee credited on 18 June 2026 was deducted on time but deposited on 12 August 2026 (due date was 7 July 2026). Under the calendar-month method, June, July and August each count as a month, so interest is ₹20,000 × 1.5% × 3 = ₹900. Note that the 1.5% runs from the date of deduction, not from the due date — missing the 7th by even one day costs interest for the deduction month too.
TRACES computes interest by counting each calendar month (or part of it) touched by the delay. Some practitioners argue for counting months from the date of default instead, which can give one month less. The calculator lets you see both; the TRACES method is the one your default notice will use.
If a quarterly TDS or TCS statement is filed after the due date, a fee of ₹200 per day applies until the day it is filed. The fee cannot exceed the total TDS or TCS reported in that statement, and it must be paid before the statement is accepted. Under the new Act this fee is levied by Section 427 (old Section 234E).
| Quarter | TDS statement (138 / 140 / 144) | TCS statement (143) |
|---|---|---|
| Q1 Apr – Jun 2026 | 31 July 2026 | 31 July 2026* |
| Q2 Jul – Sep 2026 | 31 October 2026 | 31 October 2026* |
| Q3 Oct – Dec 2026 | 31 January 2027 | 31 January 2027* |
| Q4 Jan – Mar 2027 | 31 May 2027 | 15 May 2027* |
For FY 2025-26 and earlier, TCS returns (27EQ) were due on the 15th of the month after the quarter (15 July, 15 October, 15 January, 15 May). See the full TDS due dates 2026-27 calendar.
Separate from the late fee, the Assessing Officer can levy a penalty of ₹10,000 to ₹1,00,000 for not filing a statement, or for filing incorrect PAN, challan or amount details. No penalty applies for late filing if the TDS has been deposited with interest and late fee, and the statement is filed within the relaxation window after the due date. That window was cut from one year to one month for statements due from 1 April 2025.
OnlineTDS alerts your team before every deposit and filing deadline and flags late challans before you file, so you avoid 201(1A) and 234E costs.
Try OnlineTDSInterest is 1.5% per month or part of a month from the date of deduction to the date of deposit when TDS is deducted but deposited after the due date. If TDS was not deducted on time, interest is 1% per month from the date it was deductible to the date it was actually deducted. Both are under Section 398(3)(a) of the Income-tax Act, 2025 (old Section 201(1A)).
Yes. The law says 'for every month or part of a month', so even a one-day delay that crosses into a new month adds a full month of interest. TRACES counts calendar months.
₹200 per day from the day after the due date until the statement is filed, capped at the total TDS or TCS amount in that statement. Under the Income-tax Act, 2025 the same fee is levied by Section 427.
The fee is capped at the TDS deducted, so a nil statement carries no 234E fee. Many deductors still file nil statements or a declaration on the e-filing portal to avoid non-filing notices.
The late fee is mandatory and is not waived by the Assessing Officer, though CBDT sometimes extends due dates by circular. The separate penalty under Section 271H / 461 can be avoided if TDS, interest and fee are paid and the statement is filed within the relaxation window.
No. Interest on late deduction or deposit of TDS and the late filing fee are not allowed as deductions while computing business income.
OnlineTDS Software tracks every due date, matches challans with TRACES and validates your return before filing — so your Forms 138, 140 and 144 go in on time and error-free.