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Income Tax

TDS Interest Calculator

Work out interest on TDS deducted late (1% a month) or deposited late (1.5% a month), for one case or a sheet of rows. Shows the due date, each month counted, and the answer under both ways of counting months.

Dates from 1 April 2021

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.

Sources & calculation basis9
Section 398(3)(a), Income-tax Act, 2025Parliament of India
At 1% for every month or part of a month ... at 1.5% for every month or part of a month.

Rates and periods for tax that became deductible on or after 1 April 2026.

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Section 201(1A), Income-tax Act, 1961Parliament of India
At one per cent for every month or part of a month ... at one and one-half per cent for every month or part of a month.

The same rates and periods for tax that became deductible before 1 April 2026.

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Section 536(2), Income-tax Act, 2025Parliament of India
Nothing shall affect any right, privilege, obligation or liability ... incurred under the repealed Income-tax Act.

Keeps liabilities that began under the 1961 Act. Clause (g) applies the 2025 Act to interest for the period after 1 April 2026 in some proceedings; which section covers those months is not settled.

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Rule 218, Income-tax Rules, 2026Central Board of Direct Taxes
On or before 30th April, where the income or amount is credited or paid ... in the month of March.

Due dates: 7th of the next month, 30 April for March, and the government office dates.

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TRACES FAQ: Late paymentCPC-TDS (TRACES)
From the date of deduction+1 day till date of Deposit.

The calendar-month count used as the main answer.

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TDS compliance FAQsIncome Tax Department
This delay will attract interest liability @ 1.5% per month from the date of deduction to the date of actual payment.

Confirms the 30 April 2026 due date and the Act that applies around 1 April 2026.

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Tax payments FAQsIncome Tax Department
In case of Government Deductors depositing TDS by way of challan, the due date will be 7th April, 2026.

Government office due date for March.

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Section 288B, Income-tax Act, 1961Parliament of India
Any amount payable ... shall be rounded off to the nearest multiple of ten rupees.

The rounded total shown under the interest. Whether TRACES rounds TDS interest this way is not confirmed.

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Section 516, Income-tax Act, 2025Parliament of India
Any amount payable or refundable under this Act, shall be rounded off to the nearest multiple of ₹10.

The 2025 Act equivalent of section 288B.

View official source

Assumptions & limitations

Calendar months are counted the way the TRACES help pages describe. Several tribunal rulings count 30-day months instead, so both answers are shown. Covers TDS deposited by challan by the monthly due dates, for dates from 1 April 2021. Not covered: deductions paid with a challan-cum-statement (rent, property, and contract or professional payments by individuals, and crypto assets), quarterly deposits allowed by the Assessing Officer, TCS, late filing fees and penalties. Check any TRACES demand against its own workings before paying.

How TDS interest is calculated

Formula

Late deduction = amount × 1% × months

From the date tax was deductible (the date of credit or payment, whichever was earlier) to the date it was deducted.

Late deposit = amount × 1.5% × months

From the date tax was deducted to the date it was deposited. Charged only when the deposit is after the due date.
  • 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.

Due dates for depositing TDS

Due dates by deductor
DeductorDeducted in MarchOther months
Not a government office30 April7th of next month
Government office, by challan7 April7th of next month
Government office, no challanSame daySame 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.

  1. Late deduction: Jun, Jul, Aug 2026 is 3 months. 3 × 1% × ₹ 50,000 = ₹ 1,500.
  2. Late deposit: Aug, Sep 2026 is 2 months. The deduction month counts again. 2 × 1.5% × ₹ 50,000 = ₹ 1,500.
  3. 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%.

Calendar months or 30-day months

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. Challan-cum-statement deductions (30 days from month end) and quarterly deposits allowed by the Assessing Officer are not covered.
  • 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. Everything is calculated in your browser.

References

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