Facing a TDS payment delay? Our TDS Interest Calculator simplifies penalty calculations under Section 201(1A). Accurately determine interest for non-deduction (1% per month) or late payment after deduction (1.5% per month). Avoid discrepancies and ensure compliance with our free, user-friendly tool. Input your TDS amount, relevant dates, and get instant results.
Formula:
The interest for late payment or non-deduction of TDS is calculated as per Section 201(1A) of the Income Tax Act, 1961.
Formula:
Total Interest = TDS Amount × (Interest Rate / 100) × Number of Months
- TDS Amount: The principal amount of Tax Deducted at Source (TDS).
- Interest Rate:
- 1% per month for non-deduction or short-deduction of TDS.
- 1.5% per month for non-payment or late payment of TDS after deduction.
- Number of Months: The period of default, where a part of a month is considered a full month.