What is Interest on late payment of TDS?
Nexa Consultancy | Startup & Finance Glossary
If TDS is deducted but not paid to the government by the due date, interest at 1.5% per month (or part of a month) is levied from the date of deduction to the date of payment.
Startup Example: A startup deducts ₹50,000 TDS in July but deposits it in September (a delay of 2 months). It will have to pay interest of ₹50,000 * 1.5% * 2 = ₹1,500.
We help startups avoid these interest costs through our compliance management.