TDS Late Payment Interest & Penalty Calculator

The Income Tax Department levies penalties and interest charges on taxpayers who fail to deduct or deposit TDS on time, adding significant financial burden beyond the original tax liability. Section 234B imposes interest at 1% per month (or part thereof) on late TDS deposits, while Section 234C levies penalty for shortfall in advance tax payment. Additionally, Section 271H imposes flat penalties for various TDS failures ranging from 50% to 200% of undeducted TDS amount, escalating based on violation severity and non-compliance history. For honest mistakes or delays, the department offers relief under Section 234E if TDS and taxes are paid within due date or at least 30 days before assessment. This calculator helps you understand the true cost of TDS non-compliance and plan proper payments to avoid these punitive charges. Many taxpayers underestimate penalty and interest liabilities that often exceed the original TDS amount, making this calculator crucial for financial planning and compliance strategy.