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
TRACES — TDS deductor services: https://www.tdscpc.gov.in/en/deductor-home.html Income Tax Department — e-Pay Tax (TDS challans): https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/e-pay-tax
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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