Missed a TDS return date, or deducted or paid TDS late? Use this TDS late fee and interest calculator to estimate the fee under Section 234E and the interest under Section 201(1A). These charges add up quickly, so it helps to see the number before you file.
234E late filing fee
If you file your quarterly TDS or TCS return after the due date, Section 234E charges a fee of Rs 200 for every day of delay. The total fee can never be more than the TDS or TCS amount of that return.
201(1A) interest on late TDS
Section 201(1A) charges interest in two situations. If you deducted TDS late, interest runs at 1 percent for every month or part of a month from the date it should have been deducted to the date you actually deducted it. If you deducted on time but deposited late, interest runs at 1.5 percent a month from the date of deduction to the date you pay it to the government.
271H penalty
On top of the above, the assessing officer can levy a penalty under Section 271H of Rs 10,000 up to Rs 1,00,000 for not filing the TDS return or for filing wrong details. It is usually waived if you pay the tax, fee and interest and file within a year of the due date.
How the TDS interest calculation works, with an example
Say you deducted TDS of Rs 50,000 on 5 May 2026 but deposited it on 20 July 2026. The due date to deposit was 7 June 2026, so the payment is late. Interest on late payment of TDS runs at 1.5 percent a month from the month of deduction to the month of deposit, and because any part of a month counts as a whole month, that is three months. So the interest is 1.5 percent times 3 times Rs 50,000, which is Rs 2,250. This is exactly the TDS interest calculation the calculator above does from your dates.
The late filing fee is separate. If the quarterly return for that period was due on 31 July 2026 and you filed it on 20 August 2026, that is 20 days late, so the 234E fee is Rs 200 times 20, which is Rs 4,000, capped at the TDS amount. Add the two and you have the total TDS challan late payment interest and fee to deposit.
Interest on delayed payment of TDS versus late deduction
People often mix up the two 201(1A) rates. Interest on delayed payment of TDS, where you deducted on time but paid the government late, is 1.5 percent a month. Interest for deducting the TDS itself late is 1 percent a month. If both happen, each applies for its own period. There is no separate TDS penalty calculator for these charges: the day-count fee sits under 234E and the month-count interest sits under 201(1A), and the tool above adds them together into one number.
What changed under the new Income-tax Act, 2025
From 1 April 2026, the new Income-tax Act, 2025 reorganises the TDS provisions. The many old deduction sections (194C, 194J, 194I, 194A and the rest) are now brought together under a single Section 393 with a table of payment codes. The late fee and interest rules described here continue, and you can confirm the exact references in the Act linked below. For payments up to 31 March 2026, the old section numbers still apply.
Related tools
For interest on your own income tax (not TDS), see the Section 234 interest and late fee calculator. To work out how much TDS to deduct, use the TDS rate calculator. To check when TDS is due, see the TDS due dates for FY 2026-27. Under the new law, see how your old TDS section maps to Section 393. File and pay on the income tax e-filing portal.
This is an estimate for general guidance and is not tax advice. Exact figures depend on the dates and your assessment. Please confirm with a qualified professional.
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Frequently asked questions
What is the late fee for filing a TDS return late?
Under Section 234E it is Rs 200 for each day of delay, and the total cannot be more than the TDS or TCS amount of that return.
What is the interest for late payment of TDS?
Section 201(1A) charges 1.5 percent a month from the date of deduction to the date of deposit. If the deduction itself was late, an extra 1 percent a month applies for that period.
Is there a penalty beyond 234E?
Yes. Section 271H allows a penalty of Rs 10,000 to Rs 1,00,000, though it is often waived if you clear the tax, fee and interest and file within a year of the due date.
Did the TDS section numbers change?
Yes. From 1 April 2026 the Income-tax Act, 2025 brings the old TDS sections such as 194C, 194J and 194I together under a single Section 393 with payment codes. The old numbers still apply to payments up to 31 March 2026.
How is interest on late payment of TDS calculated?
Interest on late payment of TDS is 1.5 percent for every month or part of a month from the date the TDS was deducted to the date it is deposited with the government. Even one day into a new month counts as a full month, which is why the figure can jump. The calculator above does this TDS interest calculation from the two dates.
Is this a TDS penalty calculator too?
It works out the 234E late filing fee and the 201(1A) interest, which are the usual charges. A separate penalty under Section 271H of Rs 10,000 to Rs 1,00,000 can be levied by the assessing officer, but it is often waived if you clear the fee, interest and return within a year of the due date.
Official reference: Income-tax Act, 2025 (as amended by the Finance Act, 2026), Income Tax Department.
Related free calculators: advance tax installment estimator.
Official source: Always confirm the latest TDS interest and late-fee rules at incometax.gov.in.