TDS Interest Calculator: Late Payment & FD Interest
Calculate interest for delayed TDS deduction and deposit with exact part-month counting, or estimate TDS on fixed-deposit interest using the current threshold.
TDS interest calculator online
Choose a calculator and enter the actual dates or annual FD interest.
Rounded to the nearest ₹10. Verify the final amount on the tax portal.
₹50,000 × 1% × 2 months + ₹50,000 × 1.5% × 2 months = ₹2,500.
Threshold crossed by ₹70,000; 10% applied to full annual interest.
₹1,20,000 × 10% = ₹12,000 estimated TDS.
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How the TDS interest calculator works
The calculator separates two defaults because the rate and period are different. Late deduction is charged at 1% per month or part, while interest on late payment of TDS is charged at 1.5% per month or part.
For transactions governed from 1 April 2026, section 398(3)(a) of the Income Tax Act, 2025 preserves the familiar interest framework. The trigger date is important: payments or credits arising before 1 April 2026 remain governed by the earlier Act even if the eventual deposit or interest payment occurs later.
The statutory deposit due date decides whether payment is late. Once it is late, the 1.5% period runs from the actual deduction date to the actual payment date.
TDS interest rates for late deduction and payment
| Default | Interest rate | Period counted | Income Tax Act, 2025 reference |
|---|---|---|---|
| Failure or delay in deducting TDS | 1% per month or part | Date deductible to actual deduction date | Section 398(3)(a)(i) |
| Failure or delay in depositing deducted TDS | 1.5% per month or part | Actual deduction date to actual payment date | Section 398(3)(a)(ii) |
Interest is compensatory and can apply in addition to late-filing fees, penalties or other consequences. If the underlying TDS return is also pending, review the TDS return due-date calendar for FY 2026-27.
How to calculate TDS interest correctly
Rule 119A treats a fraction of a month as a full month when interest is payable for every month or part. The count follows calendar months, not a 30-day block.
One chargeable month
A delay from 3 July to 28 July remains within July and counts as one month.
Part month = full monthTwo chargeable months
A delay from 30 June to 1 July touches June and July, so two months are counted.
Two days can mean two monthsRound down to ₹100
Rule 119A requires the amount on which interest is calculated to ignore the fraction below ₹100.
₹50,099 becomes ₹50,000Round to nearest ₹10
The calculator displays the computed interest and rounds the estimated payable amount to the nearest ten rupees.
Portal amount remains finalTDS interest calculation examples
Example 1: TDS deducted late
Tax of ₹50,000 was deductible on 30 June but was actually deducted on 3 July. June and July are both counted. Interest is ₹50,000 × 1% × 2 months = ₹1,000.
Example 2: TDS deposited after the due date
TDS of ₹50,000 was deducted on 3 July, due for deposit on 7 August and paid on 15 August. Because the deposit is late, July and August are counted. Interest is ₹50,000 × 1.5% × 2 months = ₹1,500.
Example 3: Both defaults apply
Using both facts above, total unrounded interest is ₹1,000 + ₹1,500 = ₹2,500. The calculator shows each component so the working can be checked against the books and challan.
Always preserve the invoice, credit entry, deduction ledger and challan date. A correct interest calculation depends on the legally relevant event date, not only the invoice date or bank debit date.
TDS on FD interest for FY 2026-27
For resident interest other than interest on securities, section 393(1), Table item 5 of the Income Tax Act, 2025 sets the payer and threshold framework. For a bank, co-operative bank or notified post-office deposit, the annual threshold is ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a resident senior citizen. In other specified cases, the threshold is generally ₹10,000.
| Interest payer | Depositor | Annual threshold | Common resident rate with PAN |
|---|---|---|---|
| Bank, co-operative bank or notified post office | Resident senior citizen | ₹1,00,000 | 10% |
| Bank, co-operative bank or notified post office | Other resident person | ₹50,000 | 10% |
| Other specified payer | Resident payee | ₹10,000 | 10% |
Once the threshold is crossed, TDS is generally applied to the full eligible interest, not only the amount above the threshold. Time deposits include recurring deposits. Under core banking, the threshold is generally checked across the bank rather than separately for each branch.
Bank TDS is only tax collection at source. Your final liability depends on total income, deductions and the tax regime. Reconcile the credit through AIS and Form 26AS and report the full taxable interest in the return.
When is TDS payment due?
For a standard non-government deductor, TDS is generally deposited by the seventh of the following month. TDS deducted in March is generally due by 30 April. Government deductions, transactions reported through challan-cum-statements and approved quarterly-payment arrangements can follow different timing.
| Deduction category | General payment deadline | Calculator action |
|---|---|---|
| April to February, non-government deductor | 7th of the following month | Auto-filled from actual deduction date |
| March, non-government deductor | 30 April | Auto-filled as 30 April |
| Government deduction without challan | Same day | Edit the due-date field manually |
| Specified challan-cum-statement | Within 30 days from month-end | Edit the due-date field manually |
How to pay TDS late payment interest
Identify the correct tax amount, date deductible, date deducted, statutory due date and actual payment date.
Apply 1% and 1.5% separately with the calendar-month and rounding rules.
Use the correct TAN login, assessment/tax year, payment type and interest field on the Income Tax portal.
Save the challan receipt and verify that the amount appears correctly before return filing or correction.
Quote and allocate the challan correctly so the default can be processed against the relevant deductees and quarter.
Businesses needing help can use CompanyJi's TDS return filing service or income tax notice reply support where a demand has already been raised.
Sources used for the calculator
The calculation logic was checked against official Income Tax Department material current to 19 September 2026.
Tax payments and transition FAQ
Section 393 table
Rule 119A
Threshold reference
TDS interest calculator FAQs
How is interest on late deduction of TDS calculated?
Apply 1% for every month or part from the date tax was deductible to the actual deduction date.
What is the interest rate for late payment of TDS?
Apply 1.5% for every month or part from actual deduction to actual payment when the deposit is late.
Does one day count as a full month?
Yes. A fraction of a month is treated as a full month. Crossing a month-end may therefore create two chargeable months.
What is the FD-interest threshold for FY 2026-27?
For a bank, co-operative bank or notified post office, it is ₹50,000 for other persons and ₹1,00,000 for resident senior citizens.
Is TDS deducted only on interest above the threshold?
No. Once the relevant annual threshold is crossed, TDS is generally computed on the full eligible interest.
What is the normal TDS rate on FD interest?
The common resident rate is 10% where PAN is furnished. A higher rate can apply where PAN is not available.
Is this calculator result final?
No. It is an estimate. The applicable law, portal computation and any order or notice determine the final amount.
Which section applies from 1 April 2026?
Section 398(3)(a) of the Income Tax Act, 2025 contains the interest framework for relevant defaults under the new law.
Resolve TDS defaults before they compound
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