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TDS Late Filing Penalty Calculator

Penalty Calculator

TDS Late Filing Penalty Calculator

Calculate exact penalties, interest, and late fees based on Indian compliance law

TDS non-compliance has three separate penalties that can apply simultaneously: a late filing fee, interest on late deposit, and a business expense disallowance that effectively taxes money you have already spent.

The late filing fee under Section 234E is Rs. 200 per day for each day the quarterly TDS return is filed late, capped at the TDS amount itself. This applies regardless of whether the TDS was deducted - simply not filing the return on time triggers it.

If TDS was deducted from payments but deposited late with the government, interest under Section 201(1A)(ii) accrues at 1.5% per month from the date of deduction to the date of deposit. If TDS was not deducted at all, the interest rate is lower - 1% per month under Section 201(1A)(i) - but the real cost is Section 40(a)(ia).

Section 40(a)(ia) is the most expensive consequence. If you made a payment on which TDS should have been deducted but was not, 30% of that entire payment is disallowed as a business expense. You pay income tax on 30% of money you already paid to someone else.

This calculator separates all three penalties so you can see the total exposure.

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How to Use This Calculator

TDS deposit deadline:

7th of the following month for most payments. For March, the deadline is April 30. Interest starts from the date of deduction, not the deposit deadline.

Quarterly return deadlines:

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Q1 (April-June): July 31

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Q2 (July-September): October 31

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Q3 (October-December): January 31

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Q4 (January-March): May 31

Section 271H note:

An additional penalty of Rs. 10,000 to Rs. 1,00,000 under Section 271H can be levied for late TDS return filing. This is waived if you file within 1 year of the due date - after that, it becomes assessable.

Section 40(a)(ia) disallowance:

This calculator estimates the disallowance based on the TDS amount entered. The actual disallowance is 30% of the gross payment on which TDS was not deducted.

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Frequently Asked Questions

Rs. 200 per day for each day the quarterly TDS return (24Q or 26Q) is filed after the due date. The total fee cannot exceed the TDS amount for the quarter. Section 234E applies even if TDS was deducted and deposited correctly - late filing of the return alone triggers it.

Section 201(1A)(ii): 1.5% per month from the date TDS was deducted to the date it was deposited with the government. If TDS was not deducted at all, Section 201(1A)(i) applies at 1% per month from the date of payment to the date of deduction.

30% of any payment on which TDS was required but not deducted is disallowed as a business expense under Section 40(a)(ia). This means you pay income tax on 30% of money you already paid to a vendor, employee, or landlord. This is often the largest financial consequence of not deducting TDS.

By the 7th of the following month for most payments (salary, contractor, professional fees, rent). Exception: March TDS must be deposited by April 30. If the 7th falls on a bank holiday, the next working day applies.

Yes. Section 271H penalty (Rs. 10,000 to Rs. 1,00,000) is waived if the TDS return is filed within 1 year of the due date, and all TDS is deposited with the correct interest. After 1 year, the penalty becomes assessable by the Assessing Officer.
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How we reviewed this page

The penalty amounts, deadlines, and regulatory requirements on this page are sourced directly from official government portals. We do not use secondary sources. When regulations change, we update the page.