TDS Interest and Late Fee Calculator (India)

About the TDS Interest and Late Fee Calculator (India)

A TRACES default notice carries three different amounts, and they are easy to confuse: 1% a month for deducting the tax late, 1.5% a month for depositing it late — counted from the day of deduction, not from its due date — and ₹200 a day for filing the quarterly statement late, never more than the tax in that statement.

Enter each payment: the amount of tax, the day the amount was paid or credited, the day the tax was actually deducted, the day it reached the Government, and the day each quarter’s statement was filed. The calculator shows the interest for every row with the months it counted, groups the rows into their quarterly statements, works out the fee for each and caps it, and adds up what to pay with the challan. Paste a hundred rows from your own spreadsheet, or type one. Nothing you enter leaves your browser.

Common uses

• Checking a TRACES default notice line by line before paying it.
• Working out the interest to pay with a challan before a late deposit.
• Telling a client exactly what a late statement will cost, and how the cap works.
• Seeing how much a single day of delay adds, because the 1.5% counts whole months.

The three amounts, and the provisions behind them

• 1% a month for late deduction — from the date the tax was deductible (the day the amount was paid or credited) to the date it was deducted: section 398(3)(a)(i) of the Income-tax Act, 2025; section 201(1A)(i) of the Income-tax Act, 1961 for FY 2025-26 and earlier.
• 1.5% a month for late payment — from the date the tax was deducted to the date it was actually paid: section 398(3)(a)(ii); section 201(1A)(ii) of the 1961 Act. It is simple interest, and it is paid before the statement is delivered (section 398(3)(b)).
• Tax collected at source follows the same two rates under the 2025 Act. For FY 2025-26 and earlier it carried one rate, 1% for every month or part of a month from the day it was collectible to the day it was paid (section 206C(7) of the 1961 Act), and the tool applies that for those years.
• ₹200 a day for a late statement — section 427 of the Income-tax Act, 2025; section 234E of the 1961 Act. The fee cannot be more than the tax deductible or collectible in that statement, and it is paid before the statement is delivered. A challan-cum-statement is its own statement, so its fee runs from its own due date and is capped at its own tax.
• The penalty for not delivering the statement, or for wrong information in it, is not less than ₹10,000 and up to ₹1,00,000 — the Assessing Officer decides (section 461 of the 2025 Act; section 271H of the 1961 Act). No penalty is levied where the tax with the fee and the interest was paid and the statement was delivered within one month of the time prescribed (one year for statements due before the Finance (No. 2) Act, 2024 shortened it). The tool shows only that statutory range, never an amount.

When the tax is due, and when the statement is

• Tax deducted or collected in a month reaches the Government within seven days from the end of that month; tax deducted in March by 30 April. An office of the Government paying with an income-tax challan has seven days from the end of the month, March included (Income-tax Rules, 2026, rule 218(1) and (2); rule 30 of the 1962 Rules).
• Rent, the purchase of immovable property, contract work, professional fees or commission paid by an individual or Hindu undivided family without a TAN, and virtual digital assets: thirty days from the end of the month, with the challan-cum-statement Form No. 141 (rule 218(3); Forms 26QB, 26QC, 26QD and 26QE under the 1962 Rules).
• The quarterly statement is due on 31 July, 31 October, 31 January and 31 May (rule 219(4)). For FY 2025-26 and earlier the TCS statement in Form 27EQ was due on the 15th of those months (rule 31AA of the 1962 Rules).

How “a month or part of a month” is counted

The Act charges interest “for every month or part of a month”, and the departmental computation counts every calendar month the period touches: tax deducted on 15 March and paid on 2 May is three months — March, April and May — not the 48 days between them. This tool uses that reading, the same as the other TDS tools here; a reading in thirty-day periods would give a smaller figure.

Each amount is rounded to the rupee. The interest on a row is worked out on the tax of that row, so a notice that groups many deductees can be checked line by line.

Sources

• Income-tax Act, 2025 — sections 398, 427 and 461; the Finance Act, 2026 substituted sections 427 and 428
• Income-tax Rules, 2026 — rules 215, 218 and 219
• Income-tax Act, 1961 — sections 201(1A), 206C(7), 234E and 271H, with rules 30, 31A and 31AA of the 1962 Rules, for FY 2025-26 and earlier
• TRACES — the justification report and the intimation that states what you finally pay

Limitations

• An estimate for information, not tax advice. The intimation TRACES issues after the statement is processed is what you finally pay; short deduction, wrong PANs and higher rates without a PAN are not worked out here.
• Interest is counted on the tax you enter: it does not check whether the rate or the threshold was right. Use the TDS calculator for that.
• The penalty under section 461 (271H of the 1961 Act) is shown only as its statutory range, because the amount is the Assessing Officer’s.
• Extensions of a statement’s due date by notification are not applied; check CBDT’s own circulars for the quarter.
• Interest on a late deposit is counted from the date of deduction, as the Act words it; a different reading of “part of a month” would give a smaller figure.
• Each row is one payment and one deposit. A part deposit, or one challan paying several months, is entered as separate rows.
• The fee’s cap is the tax of the rows you enter for that quarter: enter every payment in the statement, not only the late ones, for the cap to be right.

Privacy

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