TDS was deducted but deposited late — how much interest? Whether you count from the due date or from the date of deduction can change the answer by a full month. This calculator shows both.
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| Counted from | Months | Interest |
|---|---|---|
| Due date | ||
| Date of deduction |
The section speaks of interest from “the date on which such tax was deducted” — the stricter reading, which adds a month. In practice many accountants and software count from the due date. The PaisaMatch Plus desktop app uses the due date by default, offers the stricter basis as a checkbox, and prints the basis used on every report.
The call is yours. That is why both figures are shown here — so you know the difference before a client or a notice asks.
1.5% for every month or part of a month under section 201(1A) of the Income-tax Act, 1961, on TDS that was deducted but deposited after the due date. Even a one-day delay counts as a full month.
For deductors other than the government, the 7th of the month after the deduction. TDS deducted in March is due on 30 April.
The section counts it from the date on which the tax was deducted, which can add a month. Many accountants and software count from the due date instead. This calculator shows both figures, so you know the difference before a client or a notice asks.
No. TDS deposited on or before the due date carries no interest on either basis.
The new Act applies from 1 April 2026 and the section numbers have changed. This calculator keeps the same maths — confirm the new section and rate for deductions made from that date.