TDS Late Deposit Interest Calculator
Calculate interest on late deduction and late payment of TDS, including TDS on property in simple steps with our easy to use calculator.
How to use TaxAdda TDS late deposit interest Calculator ?
- Step-1: Enter TDS amount
- Step-2: Select if the TDS is on the purchase of immovable property
- Step-3: Enter the due date for deduction of TDS
- Step-4: Enter actual date of deduction of TDS
- Step-5: Enter the actual or expected date of depositing the TDS
Once you enter all these inputs our calculator will display the results separately for interest on late deduction & interest on late payment of TDS.
How is Interest on TDS calculated?
- Late deduction of TDS: Interest is calculated @ 1% per month for late deduction of TDS from the due date of deduction to the actual date of deduction The delay is calculated in no. months considering part of the month as full month.
- Late Payment of TDS: Interest is calculated @1.5% per month for late deposit of TDS from the actual date of deduction to the actual date of deposit. The delay is calculated in no. months considering part of the month as full month.
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This calculator covers the followings:-
Due Date of TDS Payment
TDS is to be paid by 7th of the following month. For month of March the last date of deposit is 30th April. The due date for payment in case of TDS on sale of immovable property under section 194IA is 30 days from the end of the month including the month of March. Know more about TDS payment due dates and Interest on late payment check this article.
Interest on Late payment
- When TDS is not deducted – 1% per month or part thereof, for the period from the date on which TDS is deductible/collectible to the date on which TDS/TCS is actually deducted/collected.
- When TDS is deducted but not paid – Interest at the rate of 1.5% per month or part thereof, for the period from the date on which TDS is actually deducted/collected to the date on which such TDS/TCS is actually paid.
Also Read –
What is TDS, How it works, TAN, Calculation- Practical Guide with Examples
Frequently asked questions
What is the due date for deduction of TDS?
The due date for deduction of TDS is the date which falls earliest between the two 'Date of payment' or 'Date of credit to account (due)'.
What is the due date for payment of TDS?
The due date for payment of TDS deducted in a month is 7th of the following month. For the month of March, the last date of deposit is 30th April.
The due date for payment in the following cases is 30 days from the end of the month including the month of March.
TDS on payment of Rent under joint Dvelopment agreement u/s 194IC
TDS on Rent u/s 194M (Individual & HUF not liable for Tax audit )
TDS on u/s 194S (payment for transfer of Virtual digital Asset exceeding Rs.50000/-)
To know more read TDS payment Due dates You can also check TDS & other due dates in our Tax Calendar.
What is the difference between TDS & TCS in Income Tax?
TDS is deducted by the payer before making payment to the payee, whereas TCS is collected by the seller additionally from the buyer at the time of sale. TCS is like Advance Tax for which you will get credit at the time of filing Income Tax Return. To know more read TCS under Income Tax
What are the rates & threshold amount to deduct TDS for various payments?
The rates & Amount limit is different for different nature of payments. Read this to know TDS Rates and Threshold limits
What is TAN?
Tax Deduction and Collection Account Number (TAN) is a unique 10 digits alpha numeric number allotted to deductor/collector of TDS. It is issued to identify each deductor. To know more about TAN & TDS read this Article TDS - Practical Guide with Examples
What is Rule-119A(c) of Income Tax for TDS Interest calculation?
According to this Rule, the amount of TDS is required to be rounded off in nearest multiples of Rs.100 for the purpose of Interest on late deduction & late payment of TDS.
Can TDS & TCS be applicable on a single transaction?
No, If the buyer is liable to deduct TDS on a payment, then the Seller can collect TCS on the same transaction.
How can we view & claim TDS deducted?
You can claim TDS at the time of filing Income Tax Return for that year in which TDS was deducted. The deductor issues a TDS certificate to the deductee for taking credit of TDS. You can also view your TDS deducted online in Form-26AS on the Traces Portal.
How TDS is deducted for big online players like Amazon, Flipkart?
Online Sellers who sell through Amazon, Flipkart etc. are also required to deduct TDS on Commission & other charges payable to Amazon/Flipkart etc. Online Sellers don't deduct TDS like other Deductors, They calculate, Pay TDS & file TDS Return and they issue TDS Certificate to these online platforms (Amazon/Flipkart) & get reimbursement of TDS amount in their settlement cycle.
Do I need to deduct TDS & File Form-26QB if I purchase property from Non Resident Indian?
No, Form-26QB is applicable only when you purchase property from a Resident Indian. TDS is to be deducted u/s 195 & to be reported in TDS Return Form-27Q if you purchase property from an NRI. To know more read TDS on Purchase of Property from Non-Resident
Is PAN mandatory to deduct TDS?
Yes, To claim credit of TDS mentioning PAN of deductee in TDS return is mandatory. If you don't provide PAN TDS will be deducted at a higher rate (20%) than prescribed & you cannot claim credit of that TDS.
What are the TDS rates applicable if we make payment to a Non-Resident?
Section -195 is applicable for deducting TDS in case of NRI. We need to check rates u/s 195 along with applicable clause of DTAA with the Resident Country of NRI. Further, If NRI has applied for lower deduction of TDS u/s 197 in Form-13 then TDS will be deducted according to rate decided by the concerned Assessing Officer.
Is TDS applicable u/s 194C on booking of Flight/train tickets & Hotel bookings through MakeMyTrip or other online platform?
No, booking tickets either through these platforms or offline does not fall under 194C. It is sale of tickets so No TDS is applicable on it. TDS is applicable on Rent of Hotel booking u/s 194I if Rooms are booked frequently & rent payment is recurring in nature and if Rent exceeds the threshold of Rs.240000/- in a financial year.
What if I don't deduct, pay & file TDS Returns?
You may be charged with interest & penalty for default in TDS compliance. Late fee for not filing TDS return on time is Rs.200/- per day u/s 234E & 271H (if delay is more than one year). Further you will be disallowed the 30% of the amount of that expenses u/s 40(a)(ia) from your Business Income on which TDS was deductible but not deducted & paid.
How to deduct TDS on payments made to Google or Facebook for Advertisement?
The policy of Google and Facebook ads about TDS is that the payer i.e. you have to deposit the TDS amount from your pocket to the government. You then have to submit the TDS certificates to the Google Ads/Facebook and then the amount will be credited back to your ad account. To know more read TDS on Payment to Google Ads or Facebook Ads