Income Tax
TDS Interest Calculator
TDS interest is 1% a month from the date tax was deductible to the date it was deducted, and 1.5% a month from deduction to deposit when the deposit is after the due date. Part of a month counts as a full month.
Your results will appear here
Enter the TDS amount and the date tax was deducted to see the interest, the due date and each month counted.
How this calculation works Examples, assumptions and sources
How TDS interest is calculated
What are the TDS interest rates?
Late deduction costs 1% a month and late deposit costs 1.5% a month, on the TDS amount.
Late deduction = amount × 1% × months
Late deposit = amount × 1.5% × months
- The amount is the TDS rounded down to a multiple of ₹100 (Rule 119A(c), 1962 Rules).
- Every month or part of a month counts as a full month.
- Both kinds of interest can apply to the same amount. They are added together.
When is TDS due for deposit?
TDS deducted in any month is due by the 7th of the next month. TDS deducted in March is due by 30 April, or by 7 April for a government office paying by challan. A government office paying without a challan deposits it the same day.
| Deductor | Deducted in March | Other months |
|---|---|---|
| Not a government office | 30 April | 7th of next month |
| Government office, by challan | 7 April | 7th of next month |
| Government office, no challan | Same day | Same day |
Rule 30 of the Income-tax Rules, 1962 until 31 March 2026, and Rule 218 of the Income-tax Rules, 2026 from 1 April 2026. The dates are the same in both.
Worked example
TDS of ₹ 50,000 became deductible on 15 Jun 2026, was deducted on 10 Aug 2026 and deposited on 12 Sep 2026. The due date is 7 Sep 2026, the 7th of the month after deduction, so both kinds of interest apply.
- Late deduction: Jun, Jul, Aug 2026 is 3 months. 3 × 1% × ₹ 50,000 = ₹ 1,500.
- Late deposit: Aug, Sep 2026 is 2 months. The deduction month counts again. 2 × 1.5% × ₹ 50,000 = ₹ 1,500.
- Total: ₹ 3,000 in calendar months. With 30-day months it is ₹ 2,500: 56 days is 2 months at 1%, and 33 days is 2 months at 1.5%.
Does TDS interest use calendar months or 30-day months?
TRACES uses calendar months. Several tribunal rulings use 30-day months, so the calculator shows both.
The TRACES help page counts calendar months from the day after deduction to the date of deposit. Its example: deducted 10 June 2023 and deposited 8 August 2023 is 3 months.
Several tribunal rulings, including UTI Mutual Fund v. DCIT (ITAT Mumbai, 2019), read a month as 30 days. The two methods differ when a period crosses a month end but is shorter than 30 days.
Example: ₹ 1,00,050 deducted on 28 Apr 2026 and deposited on 8 May 2026, one day after the due date. Calendar months count Apr, May 2026: ₹ 3,000. The 10 days are one 30-day month: ₹ 1,500.
The calculator shows calendar months as the main answer, because TRACES demands use them.
Edge cases
- Deposit on the due date: no late-deposit interest.
- March deductions are due by 30 April. ₹ 25,000 deducted on 20 March 2026 and deposited on 5 May 2026 counts Mar, Apr, May 2026: ₹ 1,125.
- Straddling 1 April 2026: the Act is chosen by the date tax became deductible. Tax deductible before 1 April 2026 stays under section 201(1A) of the 1961 Act, and its months are counted as one period. Section 536(2)(g) of the 2025 Act may apply section 398 to the months from April 2026. The rates are the same, so the amount does not change.
- Not yet deposited, or not yet deducted: interest runs to the as-of date and is marked as an estimate.
- Part months: 1 day into a new month counts that whole month.
- Deducted on the last day of a month: that month is not counted for late deposit.
- Deducted before the date it was deductible: no late-deduction interest.
- An amount below ₹100 rounds down to 0, so its interest is 0.
Assumptions and supported period
- Dates from 1 April 2021 up to today.
- TDS deposited by challan by the monthly due dates. Calendar months follow the TRACES help pages; 30-day months follow several tribunal rulings, so both answers are shown.
- Not covered: deductions paid with a challan-cum-statement, due 30 days from month end (rent, property, contract or professional payments by individuals, and crypto assets), quarterly deposits allowed by the Assessing Officer, TCS, late filing fees and penalties.
- The total is also shown rounded to the nearest ₹10 (section 288B of the 1961 Act, section 516 of the 2025 Act). Whether TRACES rounds TDS interest this way is not confirmed.
- Rules were checked on 14 September 2026. Check any TRACES demand against its own workings before paying.
References
- Section 398(3)(a), Income-tax Act, 2025: Consequences of failure to deduct or pay, or collect or pay
- Section 201(1A), Income-tax Act, 1961: Consequences of failure to deduct or pay: interest
- Section 536(2), Income-tax Act, 2025: Repeal and savings
- Rule 218, Income-tax Rules, 2026: Time and mode of payment to Government account of tax deducted or collected at source
- TRACES FAQ: Late payment: Interest on late payment of TDS
- TDS compliance FAQs: TDS compliance under the Income-tax Act, 2025
- Tax payments FAQs: Due dates for depositing TDS
- Section 288B, Income-tax Act, 1961: Rounding off amount payable and refund due
- Section 516, Income-tax Act, 2025: Rounding off of amount of total income, or amount payable or refundable
- Rule 30, Income-tax Rules, 1962: due dates before 1 April 2026 (text on Indian Kanoon)
- Rule 119A, Income-tax Rules, 1962: part months and rounding down to ₹100 (text on Indian Kanoon; Rule 269 of the 2026 Rules)
Related calculators
Common questions
Frequently asked questions
What is the interest rate for late deduction of TDS?
1% a month on the TDS amount, from the date tax was deductible to the date it was deducted. Tax is deductible on the date of credit or payment, whichever was earlier. This is section 201(1A) of the Income-tax Act, 1961 and section 398(3)(a) of the Income-tax Act, 2025.
What is the interest rate for late deposit of TDS?
1.5% a month on the TDS amount, from the date tax was deducted to the date it was deposited. It is charged only when the deposit is after the due date. The due date is the 7th of the next month, or 30 April for tax deducted in March by a deductor that is not a government office.
Does part of a month count as a full month for TDS interest?
Yes. Every month or part of a month counts as a full month. One day into a new month counts that whole month.
Can late deduction and late deposit interest both apply?
Yes. When tax is deducted late and then deposited after the due date, both kinds of interest apply to the same amount. They are added together.
Is the TDS amount rounded before interest is worked out?
Yes. The TDS amount is rounded down to a multiple of ₹100, under Rule 119A(c) of the Income-tax Rules, 1962. An amount below ₹100 rounds down to 0, so its interest is 0.
These answers follow the sources listed in References. How Khatakit checks its rulesReport an error on GitHub