Missed a TDS statement date, deducted TDS late or deposited it after the applicable due date? Use this calculator to estimate the Rs 200 daily statement fee and monthly interest at 1 percent or 1.5 percent. For defaults from 1 April 2026, the current references are sections 427 and 398(3)(a) of the Income-tax Act, 2025. Earlier defaults use sections 234E and 201(1A) of the Income-tax Act, 1961.
Which TDS sections apply?
The calculation rates continue, but the statutory references depend on the date that triggered the TDS obligation:
- Payment or credit on or after 1 April 2026: section 398(3)(a) of the Income-tax Act, 2025 covers interest for failure to deduct or deposit TDS, and section 427 covers the daily fee for a late TDS or TCS statement.
- Payment or credit on or before 31 March 2026: sections 201(1A) and 234E of the Income-tax Act, 1961 continue to govern the related default, even if payment or correction happens later.
The Income Tax Department confirms this transition in its TDS Compliance FAQs.
TDS statement late filing fee
For Tax Year 2026-27 onward, section 427 charges Rs 200 for every day a required TDS or TCS statement is late, capped at the tax deductible or collectible for that statement. For earlier periods, section 234E contains the corresponding rule.
Interest on late TDS deduction or deposit
For defaults from 1 April 2026, section 398(3)(a) charges 1 percent for every month or part of a month from the date tax was deductible to the date it is actually deducted, and 1.5 percent from the date of deduction to the date of payment when deposit is late. Old section 201(1A) applies the corresponding rates to earlier defaults.
Other consequences are not included
The calculator estimates the daily statement fee and the two interest components only. Additional fees, recovery, prosecution or other consequences can depend on the applicable Act and facts. Use the official portal and professional advice for a notice, incorrect statement or material default.
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 statement fee is separate. If the quarterly statement was due on 31 July 2026 and filed on 20 August 2026, it is 20 days late. Section 427 therefore gives a fee of Rs 200 times 20, or Rs 4,000, subject to the statutory cap. Add that to the interest to estimate the combined amount.
Interest on delayed payment versus late deduction
These are two different periods. Late deduction uses 1 percent per month or part of a month from the date tax should have been deducted to the actual deduction date. Late deposit uses 1.5 percent per month or part of a month from the actual deduction date to payment, but only when payment is after the applicable deposit due date. Enter that due date in the calculator because March, government and challan-cum-statement timelines can differ from the normal monthly rule.
What changed under the Income-tax Act, 2025
For transactions from 1 April 2026, section 393 consolidates the withholding provisions, section 398 contains the default and interest rules, and section 427 contains the statement late fee. The rates used in this calculator remain 1 percent, 1.5 percent and Rs 200 per day. Use the transaction date to choose the correct Act and section reference.
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 statement late?
For Tax Year 2026-27 onward, section 427 charges Rs 200 for each day of delay, capped at the tax deductible or collectible for the statement. Section 234E applies to earlier periods.
What is the interest for late payment of TDS?
Section 398(3)(a) of the Income-tax Act, 2025 charges 1.5 percent a month or part of a month for late deposit and 1 percent for late deduction. Old section 201(1A) applies to defaults triggered on or before 31 March 2026.
Can other consequences apply?
Yes. Additional consequences can depend on the applicable Act, the type of default, notices and whether a statement is incorrect. This calculator includes only the daily statement fee and interest, so check the official portal for a material default.
Did the TDS section numbers change?
Yes. From 1 April 2026, section 393 contains the main withholding tables, section 398 covers default interest, and section 427 covers the statement late fee. Old Act references continue for obligations triggered on or before 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 complete TDS penalty calculator?
No. It estimates the section 427 or old section 234E daily fee plus section 398(3)(a) or old section 201(1A) interest. It does not calculate every possible consequence of a default or incorrect statement.
Official references: Income Tax Department TDS Compliance FAQs, TAN challan guide, and the Income-tax Act, 2025 as amended by the Finance Act, 2026.
Related free calculators: advance tax installment estimator.
Official source: Always confirm the latest TDS interest and late-fee rules at incometax.gov.in.