Taxation

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Interest on TDS Calculator

This interest on TDS calculator works out the interest owed under Section 201(1A) for late deduction or late deposit. Adjust any input below and your results update instantly.

Your details

Adjust the inputs below and your results update instantly.

TDS amount (₹)*

The tax deducted at source amount this interest is calculated on, not the full payment it was deducted from.

₹100₹20L

e.g. ₹50,000 TDS

Months of late deduction*

How many months late TDS was actually deducted, from the date it was deductible. Any part of a month counts as a full month, so round up.

012

e.g. 0 if deducted on time

Months of late deposit*

How many months late the deducted TDS was actually deposited with the government, from the date it was deducted. Any part of a month counts as a full month, so round up.

012

e.g. 2 if deposited 2 months late

These are example numbers. Edit any input on the left to see your own.

Total interest owed under Section 201(1A)

₹1,500

0mo late deduction + 2mo late deposit

TDS amount

₹50,000

Total payable

₹51,500

₹0 for late deduction, ₹1,500 for late deposit, on ₹50,000 TDS.

Compare scenarios

See how much interest a timely deposit or deduction would have saved.

Your plan

0mo late deduction, 2mo late deposit

₹1,500

Interest owed

Baseline

Deposited on time

Same late deduction, no late deposit

₹0

Interest owed

Less interest

Both on time

No late deduction or deposit

₹0

Interest owed

Best case

Worked example, using your numbers

A step-by-step walkthrough of how the two interest components add up.

Step 1 · Late deduction interest

At 1% a month for 0 months, that's

₹0

Step 2 · Late deposit interest

At 1.5% a month for 2 months, that's

₹1,500

Step 3 · Total payable

Adding both to the original TDS amount gives

₹51,500

✓

Total interest of ₹1,500 is owed on top of the ₹50,000 TDS itself, bringing the total payable to ₹51,500.

Personalised insights

What your numbers reveal, and what changing them would do.

Total interest owed: ₹1,500

On top of the ₹50,000 TDS itself, bringing the total payable to ₹51,500.

No late-deduction interest applies

TDS was deducted on time, so this component of the interest is zero.

Late deposit alone costs ₹1,500

2 months late, at the steeper 1.5% a month, since the money was already withheld.

Depositing on time is the cheaper mistake to avoid

At 1.5% a month (18% annualised) versus 1% a month for late deduction, a delayed deposit costs 50% more per month than a delayed deduction of the same length.

How this is calculated

Every step of the math behind your result, shown in the open.

Interest for late deduction

T = TDS amount, m_ded = months late (deductible date to actual deduction), I_ded = late-deduction interest

Charged at 1% per month on the TDS amount itself, for every month (or part of one) between when TDS should have been deducted and when it actually was.

Example: ₹50,000 × 1% × 0 months → ₹0

Interest for late deposit

T = TDS amount, m_dep = months late (deduction date to actual deposit), I_dep = late-deposit interest

Charged at the steeper 1.5% per month once TDS has been deducted but not yet deposited with the government, for every month (or part of one) of the delay.

Example: ₹50,000 × 1.5% × 2 months → ₹1,500

Total amount now payable

T = TDS amount, I_ded/I_dep = interest computed above, Total = what's actually owed now

The original TDS amount plus both interest components gives the full amount due, on top of whatever return or correction statement the delay may also require.

Example: ₹50,000 + ₹0 + ₹1,500 → ₹51,500

Assumptions

Interest is simple, not compounding: each month's interest is calculated on the original TDS amount, not on a growing balance.
Any part of a calendar month counts as a full month for both late-deduction and late-deposit interest — there's no daily proration.
This calculates interest only, not the TDS amount itself, and doesn't cover any separate late-filing fee for the TDS return.
Figures are indicative only, not tax advice. Consult a chartered accountant for your actual interest liability.
Based on Section 201(1A) interest rates as of July 2026.

Understanding TDS interest

The concept, the motivation, and what to watch out for.

Two different delays, two different rates

Section 201(1A) charges interest whenever TDS is deducted or deposited late, but late deduction and late deposit are penalized at different rates: 1% a month for late deduction, and a steeper 1.5% a month for late deposit, once TDS has actually been withheld.

This calculator works out both separately, then adds them together, since a single TDS amount can be both deducted late and deposited late in the same instance.

Part of a month still counts as a full month

There's no daily proration: being even one day late into a new month means that whole month counts toward the interest calculation.

Late deposit is the costlier delay

1.5% a month works out to 18% annualised, more expensive than most personal loans, which is why depositing on time matters even if the deduction itself was a little late.

How this interest on TDS calculator helps

Enter the TDS amount and how many months late each step was, and see the interest owed for each, plus the total amount now payable.

Did you know?

A few facts behind TDS interest and Section 201(1A).

Late deduction costs 1% a month

Measured from the date TDS should have been deducted to the date it actually was, with any part of a month rounded up to a full one.

1.5%

Late deposit costs 18% a year

1.5% a month compounds to an 18% annualised rate, well above most loan rates, on money the deductor has already withheld but not yet paid over.

Round up

There's no such thing as a half-month delay

A single day into a new month still counts as a full month of interest under Section 201(1A), for both late deduction and late deposit.

201(1A)

Separate from the TDS itself

This interest is charged on top of the TDS amount actually owed, not instead of it: paying the interest doesn't excuse depositing the underlying TDS.

Frequently asked questions

Straight answers to the questions we hear most about this interest on TDS calculator.

What is TDS interest under Section 201(1A)?

It's the interest charged when TDS is deducted late, deposited late, or both: 1% a month for late deduction, and 1.5% a month for late deposit, calculated on the TDS amount itself.

What is the calculation of interest on TDS?

The calculation of interest on TDS is: TDS amount × rate × number of months delayed, divided by 100 — 1% a month for late deduction, 1.5% a month for late deposit, with any part of a month rounded up to a full one. This TDS interest calculator applies that formula automatically once you enter your TDS amount and delay.

Is interest on TDS calculated the same way for every payment type?

Yes. Interest on TDS under Section 201(1A) doesn't depend on which section the TDS itself falls under (salary, rent, professional fees, or otherwise) — the same 1%/1.5% rates and month-counting rule apply regardless of payment type.

Why is the late deposit rate higher than the late deduction rate?

Once TDS has actually been deducted, the government treats it as money that was never really the deductor's to hold onto, so delaying its deposit is penalized more heavily than a delay in deducting it in the first place.

How is a 'month' counted here?

Not as a full 30 days: any part of a calendar month counts as a whole month for this calculation. Being one day late into a new month still adds a full extra month of interest.

Can both late deduction and late deposit interest apply to the same TDS amount?

Yes. They're independent delays measured from different starting points, so a single TDS deduction that was both late to be deducted and late to be deposited accrues both kinds of interest, added together.

Does this calculator compute the TDS amount itself?

No. It only calculates the interest owed on a TDS amount you already know. Use the TDS Calculator first to work out the TDS amount itself, then bring that figure here.

Is this tax advice?

No. This tool provides indicative estimates based on your inputs. Consult a chartered accountant for your actual interest liability and how to pay or report it.