A TDS interest calculator helps taxpayers compute interest on late TDS payments. First, it saves time by automating complex calculations. Also, it ensures accuracy in determining dues. Moreover, it helps avoid penalties through timely payments. Furthermore, it assists in financial planning. Therefore, this tool is essential for compliance. Additionally, it provides instant results. Hence, users can make informed decisions. Finally, it simplifies tax management. In summary, a TDS interest calculator is vital for taxpayers.
TDS interest is a penalty for delayed tax deposits. Specifically, it applies when TDS isn't paid on time. The rate is 1.5% monthly. Importantly, it starts from deduction date. Consequently, delays increase liabilities. Therefore, timely payment is crucial. Furthermore, interest compounds monthly. Also, it's mandatory under tax laws. Moreover, non-payment attracts more penalties. Hence, understanding TDS interest is important. Ultimately, it ensures tax compliance.
Our TDS interest calculator is the most accurate tool available. Unlike others, it uses the exact formula prescribed by the Income Tax Department. Here's how to use it:
This calculator considers partial months as full months, as per tax laws. For example, even one day late counts as one full month. Our tool is regularly updated with the latest tax regulations to ensure accuracy.
The official formula used for calculating TDS interest as per Income Tax Act:
Where:
- TDS Amount = Amount deducted as TDS
- Months = Number of months from deduction to payment (rounded up)
- Interest Rate = 1.5% per month (default)
Example: For ₹50,000 TDS deducted on June 1 but paid on August 10:
Months = 3 (June-July-August, rounded up)
Interest = 50,000 × 3 × 0.015 = ₹2,250
Our TDS interest calculator simplifies complex calculations. First, it takes your input data. Then, it computes the time difference. Importantly, it counts each started month as full. Next, it applies the interest rate. Also, it shows detailed results. Therefore, you understand the calculation. Moreover, it updates instantly. Hence, you can modify inputs easily. Furthermore, it saves calculation history. So, you can reference past results. Additionally, it works offline. Thus, accessibility improves. Finally, it's completely free. In summary, our calculator is efficient.
Enter TDS amount and relevant dates
System calculates total months (rounded up)
Interest = Amount × Months × Rate
Get interest amount with detailed breakdown
| Period of Delay | Interest Rate | Interest on ₹1,00,000 | Legal Reference |
|---|---|---|---|
| Up to 1 month | 1.5% per month | ₹1,500 | Section 201(1A) |
| 1-2 months | 3% (1.5% × 2) | ₹3,000 | Section 201(1A) |
| 2-3 months | 4.5% | ₹4,500 | Section 201(1A) |
| 3-6 months | 7.5% to 9% | ₹7,500 - ₹9,000 | Section 201(1A) |
| 6-12 months | 9% to 18% | ₹9,000 - ₹18,000 | Section 201(1A) |
| More than 1 year | 18% + penalties | ₹18,000+ | Section 201(1A) |
Note: Interest is calculated monthly from the date of deduction until payment date. Even one day into a new month counts as a full month for interest calculation purposes.
TDS must be paid by the 7th of the following month. For example, May TDS is due by June 7th. However, March TDS has a April 30th deadline. Late payments incur 1.5% monthly interest. Therefore, timely payment is crucial.
No, TDS interest is not tax deductible. It is a penalty for late payment. Therefore, you cannot claim it as expense. Moreover, it must be paid separately. Consequently, it increases your tax liability. Hence, avoid delays.
Each started month counts as full month. For example, if deduction was June 1 and payment August 5, it's 3 months (June, July, August). Even one day into a month counts. Therefore, our calculator rounds up.
No, TDS interest must be paid in full. The tax department doesn't allow installments. Moreover, additional penalties apply for non-payment. Therefore, clear dues immediately. Also, file correction statements promptly.
Non-payment leads to severe consequences. First, interest keeps accumulating. Also, you may face penalties up to the TDS amount. Moreover, prosecution is possible. Therefore, use our calculator and pay promptly.