How to Calculate Late Challan Payment Interest on TCS

TDS || How to Calculate Interest

How to calculate interest on late deduction and deposit in e-TDS Software 
Interest on late deduction and late deposit of TDS/TCS is applicable at the rate of 1% and 1.5 % per month respectively.

Interest on Late Deduction: @1% per Month.
Interest on Late Deposit/ Late Challan Payment For TDS: @ 1.5% Per Month
Interest on Late Deposit/ Late Challan Payment For TCS: @ 1% Per Month

Here, @1% rate is applicable from the date on which the tax was deductible to the date of the actual deduction
@1.5% rate is applicable from the due date of deposit to the date of actual deposit.
To generate the Interest on Late Deduction report, please follow the steps provided below:
Step 1: 
Open the e-TDS software. Go to Reports → Interest Calculation option in the menu bar.
Step 2:
Now select form type (Form 24, Form 26, Form 27 and Form 27EQ) and click on 'Calculate' button. 


Step 3:
Now, check the interest calculation details for the respective Form Type.


Step 4:
Users can also download and print this report by clicking on the 'Print' button to generate the Interest Calculation Report in Word format.




Note: The interest report generated is based on existing details in salary and other than salary entered in the software.

Hope This Helps.

    • Related Articles

    • TDS || Challan Payment

      Online Challan Payment Open the Challans module in the system and choose the applicable Form from the options available (24Q, 26Q, 27Q, or 27EQ). Click on the "Add New Challan" button to initiate a new payment entry. Fill these details and navigate ...

    • Interest Calculation - If challan paid via book entry

      Interest Calculation - If challan paid via book-entry TDS Payment Due Date  - If paid via book-entry- the same day on which TDS is deducted,  When a part or whole amount of TDS is not paid then 1.5% per month interest is subject to TDS/TCS amount ...

    • ExpressTDS || Late Fee Allocation

      Late Fee Allocation in ExpressTDS To allocate a late fee in ExpressTDS, follow these structured steps: Step 1: Navigate to Deductor Master Access Deductor Master from the main menu. Select the relevant Company or Deductor. Go to the Return Summary ...

    • ZenIT || How to Calculate and Generate the Advance Tax Challan

      Any person having an estimated tax liability of Rs. 10,000 or more in a year is required to pay tax in advance. Advance tax applies to all the taxpayers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older, and do not ...

    • Zen IT || e-Payment of Challan

      Online Challan Payment: Navigate to the "Transactions" module in the system and click on the "e-Payment of Challan" button. Fill out the required Income Tax and other payment details. Select your preferred mode of payment (Debit Card, Net Banking, ...