TDS (Tax Deducted at Source) is deducted from the interest earned. This calculator shows both gross and net interest earnings.
| Month | Principal | Interest | TDS | Net Amount |
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If you are deducting TDS (Tax Deducted at Source), it is important to deposit it with the government on time. Delay in payment can lead to interest charges and penalties. The TDS Interest Calculator helps you quickly find out how much interest you need to pay if there is a delay.
What is TDS?
TDS stands for Tax Deducted at Source. It is a part of tax collected by the government when a payment is made. For example, if you pay someone for services, a small part is deducted as TDS and submitted to the tax department.
Why Use a TDS Interest Calculator?
Sometimes, TDS is deducted on time but paid late. In such cases, interest applies. Instead of calculating manually, this tool saves your time and gives instant results. You only need to enter a few details:
1. TDS amount
2. Date of deduction
3. Date of deposit
The calculator then shows the interest amount as per the rules of the Income Tax Act.
Interest on Late TDS Payment
There are two situations:
1. TDS Deducted But Not Paid: Interest is 1.5% per month from the date of deduction to the date of deposit.
2. TDS Not Deducted: Interest is 1% per month from the date the tax was deductible till the date it is actually deducted.
Example
If you deducted $1,000 TDS on January 10 and deposited it on March 20, the delay is for over 2 months. So, interest will be:
$1,000 × 1.5% × 3 = $45
That means you have to pay $45 as interest in addition to the original TDS.
Avoid Penalties
Late TDS payments can attract not just interest, but also penalties and disallowance of expenses. Using the TDS Interest Calculator keeps you aware of your dues and helps avoid costly surprises.
Try the TDS Interest Calculator Now
Whether you are a business owner, accountant, or freelancer, this tool makes your tax work easier. Enter your details and get your results in seconds. Use the TDS Interest Calculator to stay compliant and plan your finances smartly in $.