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Income-tax Act, 2025 (Sec 398(3) & 427) · Income-tax Act, 1961 (Sec 201(1A) & 234E) Transition

TDS Interest & Late Fee Calculator

Deterministic statutory computation of penal interest for failure to deduct (1%), delayed deposit (1.5%), and statement late filing fee (₹200/day) under the Income-tax Act, 1961 and Income-tax Act, 2025.

TDS / TCS Default Parameters

Statutory Assessment Form

Transaction & Compliance Dates

Income-tax Act, 2025Form 140

TDS Statutory Default Summary

TDS Principal Amount₹50,000Rule 119A Base: ₹50,000
Total Statutory Interest₹2,2503 aggregate month(s)
Statement Late Fee₹00 day(s) @ ₹200/day
Final Statutory Net Payable
₹52,250

TDS (₹50,000) + Interest (₹2,250) + Late Fee (₹0) = ₹52,250

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Component-wise Statutory Breakdown

1. Interest for Failure to Deduct (Section 398(3)(a)(i))₹0

Tax was deducted on or before the deductible date. No interest for failure to deduct.

2. Interest for Late Deposit (Section 398(3)(a)(ii))₹2,250

Deposit due date was 07/06/2026. Payment made on 20/07/2026. Statutory interest runs from the date of deduction (15/05/2026) to payment date for 3 month(s) @ 1.5% per month on ₹50,000.

3. Statement Late Filing Fee (Section 427)₹0

Statement was filed on or before the prescribed due date (31/07/2026). Zero late fee.

Operational Comparison & Advisory Note (TRACES / CPC-TDS):

TRACES / CPC-TDS operational system-generated intimations historically compute interest on a calendar-month basis (counting each calendar month touched). Where an automated Section 200A intimation reflects a higher calendar month charge, the excess is contestable under Rule 119A and authoritative tribunal rulings (e.g. Tata Teleservices Ltd. v. DCIT). Verify the system-generated demand separately.

Master Statutory Reference Matrix

Income-tax Act, 1961 vs. Income-tax Act, 2025

Statutory SubjectIncome-tax Act, 1961Income-tax Act, 2025Statutory Scope
Failure to Deduct InterestSection 201(1A)(i) @ 1.0% / monthSection 398(3)(a)(i) @ 1.0% / monthFrom deductible date to actual deduction date
Late Deposit InterestSection 201(1A)(ii) @ 1.5% / monthSection 398(3)(a)(ii) @ 1.5% / monthRuns strictly from deduction date to payment date
Statement Late Filing FeeSection 234E (₹200/day capped at TDS)Section 427 (₹200/day capped at TDS)From statement due date to actual filing date
Deposit Due DatesRule 30 (7th of next month; 30th April for March)Rule 218 (7th of next month; 30th April for March)Govt book entry: same day; Challan-cum-statement: 30 days
Interest Computation & RoundingRule 119A (Fraction = full month; ₹100 floor)Rule 282 (Fraction = full month; ₹100 floor)Tax base ignores fraction of ₹100; s. 288B rounds total to ₹10
Salary StatementForm 24QForm 138Quarterly salary return (Section 192 / Section 393)
Resident Non-Salary StatementForm 26QForm 140Contractors, professionals, rent, commission, goods
Specified Challan-cum-StatementForms 26QB, 26QC, 26QD, 26QEForm 141Property purchase, individual rent > ₹50k, 194M, 194S VDA
TCS Quarterly StatementForm 27EQForm 143Tax Collected at Source schedule
Non-Resident StatementForm 27QForm 144Foreign payments, DTAA treaty remittances (Section 195)

Legal Analysis: Judicial Interpretation of 'Month or Part Thereof' under Direct Tax Law

Section 201(1A) of the Income-tax Act, 1961 and Section 398(3)(a) of the Income-tax Act, 2025 both mandate simple interest 'for every month or part of a month'. Rule 119A(b) of the Income-tax Rules, 1962 (and Rule 282 of the 2026 Rules) operationalizes this by deeming any fraction of a month to be a full month.

In contrast, the Centralized Processing Cell (CPC-TDS) and TRACES automated batch software calculate interest on a calendar-month touched basis, which may bill 2 full months for a 1-day crossing over month-end.

However, appellate judicial authorities—specifically the ITAT Bangalore Bench in Tata Teleservices Ltd. v. DCIT [2016] 158 ITD 560 and the Gujarat High Court in CIT v. Arvind Mills Ltd. (339 ITR 378)—have held that interest measures continuous elapsed duration. A fractional delay of a few days constitutes a single fraction of a month, which Rule 119A rounds to exactly 1 month. The SKM Laws calculator implements this elapsed duration doctrine as its primary legal computation while transparently explaining the TRACES administrative demand model.

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