What is the penalty for late TDS deposit?

₹200 per day late fee under Section 234E plus 1.5% per month interest under Section 201(1A) on the TDS amount. Both run from the due date (7th of the next month) until the date of deposit.

Can late TDS deposit affect my tax deductions?

Yes. If TDS is not deposited by the due date of the income tax return of the deductee, the related expense can be disallowed under Section 40(a)(i), increasing your taxable income.

When must TDS be deposited?

TDS must be deposited by the 7th of every month following the month of deduction. For March, the deadline is 30th April.

How is the TDS late fee and interest calculated?

The late fee is a flat ₹200 per day from the due date to the deposit date, and it cannot exceed the TDS amount for that quarter. Interest is 1.5% per month (or part of a month) on the TDS amount — so even one day into a new month counts as a full month. This calculator multiplies ₹200 by the days late and applies 1.5% per started month to give your total.

Is the TDS interest charged per month or per day?

Per month, and crucially a part of a month is treated as a full month. So 31 days late is charged as two months of interest, not one month and one day. This is why depositing even slightly into a new month sharply increases the interest portion.

Does the ₹200 per day TDS late fee have a maximum limit?

Yes. The Section 234E late filing fee cannot exceed the total TDS amount for that quarter — so the daily fee stops accruing once it equals the TDS deducted. The interest under Section 201(1A), however, keeps running separately and is not subject to that cap.

Can I avoid prosecution if I deposit TDS late?

Late deposit with interest and late fee is a civil default, but wilful non-deduction or non-deposit can attract prosecution under Section 276B, punishable with imprisonment. Depositing the TDS along with interest as soon as possible is the practical way to keep a genuine delay from escalating into a wilful-default question.

What is the difference between late TDS deposit and late TDS return filing?

Late deposit means you deducted the tax but paid it to the government after the 7th-of-next-month deadline — that triggers 1.5% monthly interest. Late return filing means the quarterly TDS statement was filed after its due date (such as 31st July for Q1) — that triggers the ₹200/day Section 234E fee and a possible Section 271H penalty. The two can apply at the same time.

TDS Late Filing Fee Calculator

Estimate penalties for late TDS deposit — ₹200/day late fee plus 1.5% monthly interest. Includes TDS return filing consequences.

TDS amount not deposited on time

₹

The TDS deducted but deposited late to the government.

₹5 lakhs

Days late

Days from the due date to the actual date of deposit.

TDS return (statement) filed?

Late filing of the TDS return (TDS/TCS statement) attracts separate penalties.

Total late fee + interest

₹13,500

₹200/day late fee + 1.5%/month interest on the TDS amount.

Late filing fee₹6,000

Interest₹7,500

Total amount due (TDS + penalty)₹5,13,500

TDS return late penalty (additional)₹200/day + potential 100% penalty

₹200/day × 30 days. Late fee cannot exceed the TDS amount.

Estimates only — not financial, tax or legal advice. Figures vary by state, capital and individual circumstances.

How to use this calculator

Enter the TDS amount, days late and return status to see your full penalty — late fee plus interest.

1
Enter the TDS amount. The total TDS deducted but not deposited to the government by the due date.
2
Enter days late. Days from the due date (7th of the next month) to the actual deposit date.
3
Indicate if TDS return was filed on time. Filing the TDS return (statement) late carries additional penalties beyond the late deposit fee.
4
Read your total liability. See late fee, interest, and total amount due (including potential return filing penalties).

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TDS late deposit penalties

Late deposit of TDS attracts two simultaneous penalties — a late fee and interest. Both are calculated from the due date to the date of actual deposit.

Late filing fee (Section 234E): ₹200 per day for late filing of the TDS statement (return). The late fee cannot exceed the total TDS amount for that quarter.
Interest (Section 201(1A)): 1.5% per month (or part thereof) on the TDS amount, from the date it was deducted to the date of deposit. Interest is calculated from the due date, not the date of deduction.
Additional penalty (Section 271H): If the TDS return is filed after the due date but before one year from the end of the quarter, the penalty is ₹200/day. If filed later, the assessing officer can levy a penalty of 10,000 to 1,00,000, up to 100% of the TDS amount.

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TDS deposit and return due dates

Key TDS deadlines every business must track:

Deposit of TDS: 7th of every month for the TDS deducted in the previous month.
For March TDS: Deposited by 30th April (annual deadline).
TDS return filing (Q1): 31st July.
TDS return filing (Q2): 31st October.
TDS return filing (Q3): 31st January.
TDS return filing (Q4): 31st May.

TDS certificates (Form 16/16A) must be issued within 15 days of the return filing due date. Late deposit blocks employees from claiming credit and can lead to disallowance of expenses for the company.

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Example — 45 days late on TDS deposit

A startup deposits ₹5,00,000 TDS 45 days late:

TDS amount: ₹5,00,000
Days late: 45
Late fee (₹200/day): ₹9,000
Interest (1.5%/mo × 2 months): ₹15,000

Total penalty = ₹9,000 + ₹15,000 = ₹24,000. Total due = ₹5,24,000.

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Consequences of persistent TDS defaults

Late deposit fee of ₹200/day until the TDS is deposited.
Interest of 1.5% per month compounding on the outstanding amount.
Disallowance of the related expense under Section 40(a)(i) if TDS is not deposited by the return filing due date — increasing your taxable income.
Prosecution under Section 276B for wilful non-deduction or non-deposit, punishable with imprisonment of 3 months to 7 years.

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