5 July 2026 · 4 min read
Interest under section 201(1A) runs at 1% per month for late deduction and 1.5% per month for late payment, counted in part months — a single day into a new month costs a full month of interest.
Separately, section 234E charges ₹200 per day for a late quarterly statement, capped at the TDS amount for that statement. Correction statements are often needed where PAN or challan details do not match.
The practical safeguard is a monthly checklist: identify deductible payments, apply the correct section and rate, deposit by the seventh of the following month, and reconcile challans before the quarterly return.
Official sources
Rates, limits and due dates change by notification. Always confirm the current position on the department portal before acting.
This article is general information, not advice for a specific case. Please speak to us before acting on it.
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