TDS Late Fee & Interest Calculator

TDS: Tax Deducted at the Source by individuals or companies making payments over a threshold. TDS is deducted from the payment.

TCS: Tax Collected at the Source; Sellers collect TCS from buyers at the time of sale. TCS is collected from the buyer in addition to the sale amount.

TDS Late fee is the penalty for delayed filing of TDS returns. Late Filing fees are covered by section 234E of Income Tax Act 1961.

The persons who have not filed TDS/TCS returns are required to pay Rs 200 per day as late fees. However the maximum late fee is restricted to total TDS/TCS amount

Interest on TDS will be levied if the TDS payment is not deducted or paid within due date. Generally TDS Payments are monthly.Interest will be calculated in the following 2 scenarios

1. TDS required to be deducted but not deducted
2. TDS deducted but not paid to Government

The interest on TDS will be calculated as follows

1. TDS required to be deducted but not deducted: Interest @ 1% for every month or part of month will be calculated from the date on which TDS is required to be deducted to date of deduction
2. TDS deducted but not paid to Government: Interest @ 1.5% per month will be calculated from the date of deduction to the date of payment.

No, the late fee u/s 234E is a statutory provision and it cannot be waived off.

The biggest difference between the TDS and TCS late fee and interest calculation is how they figure out the interest amount. This is because the due dates for TDS and TCS are different. Usually, the 31st and 15th of the following dates respectively.

Although adhering to the deduction and preparing to submit the TDS, TCS can be a laborious process, their underlying purpose as stipulated in the Income Tax Act is to deter tax evasion by income recipients or purchasers of specific goods.