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TDS Interest Calculator for Late Payment and Compliance Review

Estimate TDS interest exposure for delayed deduction or delayed deposit so you can identify compliance gaps early and prepare accurate working papers.

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Late Deduction
Sec 201(1A) @ 1%/mo
Section 201(1A) — Interest @ 1% per month from the date TDS was required to be deducted to the date it was actually deducted. Any part of a month is counted as a full month.
Date of payment or credit to payee — whichever is earlier
Legal Reference — Income Tax Act 1961
Sec 201(1A)Late deduction: 1%/month. Late deposit: 1.5%/month. Part month counts as full month.
Sec 234E₹200/day for late TDS return filing. Total fee capped at TDS amount.
Sec 271HPenalty ₹10,000–₹1,00,000 if return not filed within 1 year of due date.
Calculated per Section 201(1A) of the Income Tax Act. For TDS filing or compliance support, contact Verslas Guru.
Overview

TDS Interest Calculator

TDS defaults often create avoidable interest costs. This tool helps accountants, finance teams, and business owners estimate the likely impact of delays and support internal follow-up before filing or payment decisions are made.

Benefits

Why this calculator matters

  • Estimate interest under common TDS delay scenarios.
  • Support reconciliation before return filing or notice response.
  • Help finance teams understand the cost of missed timelines.
  • Create a clearer base for internal documentation and correction.
Use Cases

Typical use cases

  • Compute interest for delayed TDS deposit before making payment.
  • Prepare workings for internal audit or finance review.
  • Estimate exposure when reconciling vendor or salary TDS timelines.
FAQs

Frequently Asked Questions

Is this useful before filing corrections?

Yes. It can help you estimate the likely interest component before proceeding further.

Who typically uses this?

Finance teams, accountants, consultants, and small businesses dealing with TDS compliance use it frequently.

Does it replace professional advice?

No. It is best used as a working estimate and should be cross-checked for actual compliance actions.