How to calculate interest on late deduction and deposit in e-TDS Software

TDS - Interest Calculation

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.
  1. Here, 1% rate is applicable from the date on which tax was deductible to the date of actual deduction,
  2. 1.5% rate is applicable from the due date of deposit to the date of actual deposit.

To Generate Interest on late deduction report, 

please follow the steps provided below: -

Step 1:  Open the  e-TDS software Go to  Reports Interest Calculation option given in menu bar


Step 2: Now select form type (Form 24Form 26Form 27 and Form 27EQ) and click on calculate button



Step 3: Now, check the Interest calculation detail for the respective Form Type



Step 4: User can also download and take print of this report by clicking on 'Print' Button to generate Interest Calculation Report in word format




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

To Calculate interest on challan payment where detail/transaction is not entered in software

please follow the steps provided below: - 


Step 1 : Open the  e-TDS software, Go to  ToolsChallan Interest Calculator option given in menu bar



Step 2 : Now select section, Month, TDS amount, and click on calculate


Once you click on calculate, the amount of interest on challan payment will be shown under ' Interest amount'.
    • Related Articles

    • 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 ...
    • How to calculate and allocate Interest

      How to calculate and allocate intrest Interest on late deduction and late deposit of TDS/TCS is applicable at the rate of 1% and 1.5 % per month respectively. Here, 1% rate is applicable from the date on which tax was deductible to the date of actual ...
    • 3CD annexure export Process - "Interest details paid u/s 201 (1A)/206C(7)"

      3CD annexure export Process - "Interest details paid u/s 201 (1A)/206C(7)"  This process helps the user to export/ import the 3CD details entered for a particular PAN in TDS Software to the Income Tax Software using an excel template format easily. ...
    • 234C Interest calculation in case of senior citizen

      234C Interest not coming in case of senior citizen where no business income. The advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with ...
    • TDS - Tax Calculation for Senior Citizens (Assessment Year 2021-22)

      TDS - Tax Calculation for Senior Citizens Tax slab 2021-22 (Old tax regime slabs) (who is 60 years or more at any time during the previous year) Net Income Range Rate of Income-tax Assessment Year 2021-22 Assessment Year 2020-21 Up to Rs. 3,00,000 - ...