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How it is calculated
Late deduction of TDS attracts 1% per month; late deposit attracts 1.5% per month under Section 201(1A) from the date of deduction to deposit. Late filing of the TDS return attracts a fee of ₹200 per day under Section 234E, capped at the TDS amount. A penalty under Section 271H may also apply.
Frequently asked questions
What is the interest on late TDS payment?
1% per month for late deduction and 1.5% per month for late deposit under Section 201(1A), calculated for each month or part month of delay.
What is the 234E late fee?
A late-filing fee of ₹200 per day for filing the TDS return after the due date, capped at the total TDS amount.
Is this tax advice?
No. Confirm the exact interest and any penalty with a CA before paying.
Related reading
India Law Simplified is an AI-assisted tool, not a substitute for a licensed CA or advocate. Tax rules and limits change with each Finance Act — verify before relying on any figure.