All about TDS late payment Interest and Late Filing Fees

TDS Late Payment Interest Calculator

Any person who is required to deduct tax at source and has failed to do so or after deducting the same has failed to pay the TDS to the govt. account within the due date of payment is liable to pay interest on the TDS. 

The Interest is calculated as under :

(a) On failure to deduct the tax at source

Interest is payable @ 1% for every month or part of the month on the amount of such tax from the date on which the tax was deductible to the actual date of deduction. 

(b) On failure to pay the tax 

Interest is payable @ 1.5% for every month or part of the month on the amount of such tax deducted and not paid from the date of deduction to the date of actual payment. 

For Example,

 

TDS of Rs.25000 was deductible on 5th Feb. 2020 but was not deducted and subsequently, it was deducted on 1st March 2020 then the interest is to be paid for Feb. & March @ 1% each for two months i.e. 25000 * 1%*2 =500. 

TDS of Rs.10000 was deducted on 26th Feb.2020 but was not paid on 7th March but it was paid on 15th March. In this case Interest @ 1.5% will be levied for Feb. & March i.e. 10000*1.5%*2=300. 

TDS Late Return Filing Fees

The TDS and TCS Returns are to be filed within the due dates as prescribed under the Act. The due dates are separately provided in our knowledge section in respect of TDS. 

If any person who is required to file TDS or TCS return fails to do so within the due date then late fees u/s 234E of the Income Tax is leviable which is Rs.200 per day of default which is subject to a maximum of TDS/TCS deductible for the particular return.