TDS Interest Calculator (Section 201(1A))
Free TDS interest calculator for Section 201(1A): work out interest on late deduction at 1% per month and late payment at 1.5% per month, with the total payable.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the formula & steps
How the TDS Interest Calculator Works
When TDS (Tax Deducted at Source) in India is deducted or deposited late, Section 201(1A) of the Income Tax Act charges interest. This calculator applies the statutory monthly rates to your TDS amount and the number of months of delay, then shows the interest and the total payable.
The Formula
Interest under Section 201(1A) is simple interest charged per month:
Interest = TDS amount × monthly rate × number of months
- Late deduction: 1% per month (or part of a month).
- Late payment / deposit: 1.5% per month (or part of a month).
A crucial rule: any part of a month counts as a full month, so the month count is always rounded up. Interest is calculated on the TDS amount due, not on the gross payment from which TDS was withheld.
Worked Example
Suppose INR 50,000 of TDS was deducted on time but deposited 3 months late:
- Rate = 1.5% per month (late payment).
- Months charged = 3.
- Interest = 50,000 × 1.5% × 3 = 50,000 × 0.015 × 3 = INR 2,250.
- Total payable = TDS + interest = 50,000 + 2,250 = INR 52,250.
If instead the same amount were deducted 3 months late, the rate would be 1% per month, giving interest of 50,000 × 0.01 × 3 = INR 1,500.
Interest at a Glance
For an INR 50,000 TDS amount, the interest grows linearly with each month of delay:
| Months delayed | Late deduction (1%) | Late payment (1.5%) |
|---|---|---|
| 1 | INR 500 | INR 750 |
| 3 | INR 1,500 | INR 2,250 |
| 6 | INR 3,000 | INR 4,500 |
| 12 | INR 6,000 | INR 9,000 |
Important Notes
This calculator covers the interest under Section 201(1A) only. Late filing of the TDS return can attract a separate fee under Section 234E (INR 200 per day) and possible penalties, which are not part of this interest calculation. Because the “part of a month” rule rounds up, the count of months can depend on the exact due date and payment date, so confirm the period carefully before paying.
Frequently asked questions
How is interest on late deposit of TDS calculated?+
Under Section 201(1A), interest is simple interest on the TDS amount. For late deduction the rate is 1% per month, and for late deposit after deduction it is 1.5% per month. Interest equals TDS amount times the monthly rate times the number of months delayed.
What is the difference between 1% and 1.5% TDS interest?+
The 1% per month rate applies when TDS was deducted late, charged from the date it should have been deducted to the date it was actually deducted. The 1.5% per month rate applies when TDS was deducted on time but deposited with the government late.
Is a part of a month counted as a full month for TDS interest?+
Yes. Section 201(1A) charges interest for every month or part of a month. So even one day into a new month counts as a whole month, which is why the calculator rounds the number of months up.
Is TDS interest charged on simple or compound interest basis?+
TDS interest under Section 201(1A) is simple interest. It is calculated on the original TDS amount for each month of delay and is not compounded, so the monthly interest stays the same throughout the delay period.
Can both 1% and 1.5% interest apply to the same TDS?+
Yes. If TDS was both deducted late and then deposited late, the 1% rate applies for the late-deduction period and the 1.5% rate applies for the late-deposit period. Calculate each part separately and add them together.