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.

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