If you delay the TDS deposit after deduction, you must file the interest under Section 201(1A). The interest rate would be 1.5% per month from the date, TDS was deducted to the date that deposit was made. This computation would be based on the number of days in a month, not the number of days in a part of a month. Under Section 234E, an individual who would be required to deduct/collect TDS/TCS would be fined Rs 200 per day unless the TDS return was filed. We have provided a step-by-step guide for calculating interest and late fees with Gen TDS Software.
