Income Tax Compliance & Statutory TDS Defaults
TDS Late Filing Fee (Section 234E) & Interest (Section 201(1A)) Calculator
Compute mandatory ₹200/day late filing fee under Section 234E for quarterly TDS returns (Forms 24Q, 26Q, 27Q, 26QB). Calculate delayed deduction interest @ 1%/month and delayed deposit interest @ 1.5%/month under Section 201(1A) with statutory Rule 119A truncation.
Standard Filing Scenarios & Presets
Return & Filing Particulars
Due: 2024-10-31Total tax in return; Section 234E fee is legally capped at this value.
Section 201(1A) Interest on Delayed Deduction / Deposit
1% per month for deduction delay and 1.5% per month for deposit delay (Rule 119A applies)
TDS Statutory Default Summary
- Principal TDS Amount
- ₹50,000.00
- Section 234E Late Filing Fee
- ₹9,000.00
- Sec 201(1A)(i) Deduction Delay Interest (1%/mo)
- ₹0.00
- Sec 201(1A)(ii) Deposit Delay Interest (1.5%/mo)
- ₹2,250.00
- Total Section 201(1A) Interest
- ₹2,250.00
- Interest Base (Rule 119A Truncated)
- ₹50,000.00
Safe from Section 271H Penalty: Return delay is within 1 year from statutory due date. No penalty of ₹10,000–₹1,00,000 will apply if fees and interest are cleared.
Frequently asked questions
Can the Section 234E late fee be waived or condoned by the Income Tax Department?
No. Unlike discretionary penalties, Section 234E is a mandatory statutory fee (levy) rather than a penalty. Assessing Officers have no discretion to waive or reduce Section 234E fees, and courts have upheld that late fees must be paid for every day of delay up to the total TDS amount.
Why is Section 201(1A) interest calculated from the date of deduction rather than the due date?
As per the explicit wording of Section 201(1A)(ii), interest is payable 'from the date on which such tax was deducted to the date on which such tax is actually paid'. Once the payment deadline (7th of next month) is breached, the law treats the deductor as holding Government funds from the moment of deduction, requiring interest for the entire holding period.
What is Rule 119A rounding and how does it affect TDS interest?
Rule 119A of the Income-tax Rules mandates that for computing interest payable by or to an assessee, the principal amount is rounded down to the nearest multiple of one hundred rupees by ignoring any fractional balance. For instance, ₹15,480 is rounded down to ₹15,400 before applying the 1% or 1.5% rate.
What are the quarterly TDS return filing due dates for FY 2024-25 and FY 2025-26?
For Forms 24Q, 26Q, and 27Q: Quarter 1 (Apr–Jun) is due by 31st July; Quarter 2 (Jul–Sep) is due by 31st October; Quarter 3 (Oct–Dec) is due by 31st January; and Quarter 4 (Jan–Mar) is due by 31st May following the financial year.
What is the penalty under Section 271H and how can it be avoided?
Section 271H empowers the Assessing Officer to levy a penalty between ₹10,000 and ₹1,00,000 for failure to file a TDS statement. However, Section 271H(2) provides immunity if the deductor proves that the TDS was deposited along with fee and interest and the statement is filed within 1 year from the original due date.
How do I pay the Section 234E late fee before filing the return?
Generate an electronic Challan ITNS 281 on the Income Tax e-filing portal. Select Major Head 0020 (Company) or 0021 (Non-Company), choose Minor Head 400 (TDS/TCS Regular Assessment or Fee), enter the fee in the 'Fee under Section 234E' field, and quote the BSR code and challan number when submitting the return.