How this TDS interest calculator works (step-by-step)

• Step 1 — Amount & dates
  Enter TDS amount (₹) and three dates:
  d0 = date tax became deductible/transaction; d1 = actual date of deduction; d2 = actual date of deposit (challan).
• Step 2 — Due date rule
  For non-government deductors, the deposit due date for TDS is the 7th of the following month (for April–February deductions) and 30 April for March. This is derived from d0 (the month tax was deductible), not from d1.
• Step 3 — Late deduction @ 1%
  If d1 > d0, compute interest for delay in deduction at 1% per month from d0 → d1, month or part thereof.
• Step 4 — Late deposit @ 1.5% (only if due date breached)
  If d2 is on/before the due date → no deposit interest.
  If d2 is after the due date → compute interest for late deposit after due date at 1.5% per month from d0 → d2, month or part thereof.
• Step 5 — Simple interest
  This is simple interest u/s 201(1A) (not compounded). Sum the two components for the total.

In short: this is both a tds late deposit interest calculator and a deduction-delay calculator, combined—following the exact tds interest rate 1% and 1.5% rules.

Examples (TDS interest calculation — month or part thereof)

• Example A — Paid on due date (no deposit interest)
  d0 = 08-Nov; d1 = 10-Nov; due date = 07-Dec; d2 = 07-Dec.
  Late deduction: 1 month @ 1% (Nov).
  Late deposit: 0 (paid on due date).
  Use case: check quickly if tds deposit interest if paid on due date applies (it doesn’t).
• Example B — Paid 1 day late (two months for deposit)
  d0 = 08-Nov; d1 = 12-Dec; due date = 07-Dec; d2 = 08-Dec.
  Late deduction: 2 months (Nov, Dec) @ 1%.
  Late deposit: 2 months (Nov, Dec) @ 1.5%.
  Why two? The period touches Nov and Dec—month or part.
• Example C — Paid in the next month
  d0 = 08-Nov; d1 = 12-Dec; due date = 07-Dec; d2 = 01-Jan.
  Late deduction: 2 months @ 1%.
  Late deposit: 3 months (Nov, Dec, Jan) @ 1.5%.
• Example D — March special due date
  d0 = 25-Mar; d1 = 27-Mar; due date = 30-Apr; d2 = 01-May.
  Late deduction: 1 month @ 1%.
  Late deposit: 2 months (Mar, Apr) becomes 3 months when paid in May (Mar, Apr, May) @ 1.5%.
  Note: March uses 30 April (not 7 April) for non-government deductors.
• Example E — Challan-cum-statement (property/rent TDS)
  For property TDS 26QB or rent TDS 26QC/26QD/26QE, the payment is a challan-cum-statement with a typical 30-day timeline from month-end of deduction. Use this calculator’s logic, but apply the section-specific due date for accurate tds interest example working.

Key points and common mistakes to avoid

• Count from d0: Once the due date is breached, deposit interest is from the date tax became deductible (d0) to the challan date (d2)—not merely from the date of deduction.
• Month-or-part is strict: Even a 1-day spill into the next calendar month counts as a full month.
• No compounding: It’s simple monthly interest, not compounded.
• Government deductors: Government deductor TDS due date rules differ—book entry can be same day; with challan, next working day. Confirm departmental rules if you’re a government office.

Who should use this (and why it’s reliable)

This tds interest calculator for companies and firms, startups, and professionals is built to mirror real-world CPC computations—splitting the result cleanly into 1% late deduction and 1.5% late deposit so you can reconcile with Form 26AS or any CPC intimation. If you’ve ever wondered how to calculate TDS interest for late payment with defensible logic, this workflow gives you a transparent trail you can keep in your working papers.

Quick recap (so you can calculate TDS interest online with confidence)

• Use the date tax became deductible (d0) to set the deposit due date (7th next month; 30 April for March).
• If you deduct late → 1% per month from d0 → d1.
• If you deposit after due date → 1.5% per month from d0 → d2.
• Apply month or part thereof across both legs.
• Add both legs for total tds interest u/s 201(1A).

Pro tips

• If d2 is on due date, deposit interest is nil; only late-deduction interest (if any) applies.
• Keep a monthly TDS calendar (with March highlighted) to avoid last-minute misses.
• For challan-cum-statement sections (e.g., 26QB), use the 30-day rule—your deposit date is tied to the statement filing.
• Reconcile interest workings with Form 26AS and CPC intimation u/s 200A if a mismatch appears.

Short worked illustration

Amount ₹1,00,000; d0 = 08-Nov; d1 = 12-Dec; due date = 07-Dec; d2 = 01-Jan
Late deduction: Nov + Dec = 2 months → ₹2,000 @1%
Late deposit (due date crossed): Nov + Dec + Jan = 3 months → ₹4,500 @1.5%
Total interest = ₹6,500

TDS interest, zero confusion—full breakup

FAQ

1) What is the TDS interest rate u/s 201(1A)?
1% per month (or part) for late deduction; 1.5% per month (or part) for late deposit after the due date.

2) When is the due date for depositing monthly TDS?
Non-government deductors: 7th of the following month; 30 April for March.

3) If I deposit TDS on the due date, is there any deposit interest?
No. Deposit interest applies only if payment is after the due date.

4) From which date is late-deposit interest counted?
From the month in which tax became deductible (d0) till the challan date (d2), once the due date is crossed.

5) How is “month or part thereof” applied?
Any calendar month touched counts as a full month (even a single day).

6) Is interest compounded?
No. It’s simple interest per month.

7) Do government deductors have different rules?
Yes—book entry same day; with challan, next working day, per departmental rules.

8) What about property rent/sale TDS (26QB/26QC/26QD/26QE)?
These are challan-cum-statements with a 30-day due date from month-end of deduction.

9) Does the tool include late-fee u/s 234E for TDS returns?
No. This calculator is only for interest u/s 201(1A). Late-fee for statements is separate.

10) Can I rely on this for litigation?
Use it for accurate working; for disputes, consult a professional and your facts/sections.

11) Why does your calculator sometimes show more months than I expected?
Because of the statutory “month or part thereof” rule—any month touched is counted.

12) Will the results match CPC intimation amounts?
They should if dates/amounts are identical. If not, re-check section/due date category.

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Disclaimer

This calculator is for educational guidance. Interest is computed as per section 201(1A) using published rules, but outcomes can vary with facts and section-specific provisions. Please verify with your tax adviser before filing.