Cost · TDS Returns
TDS Return Late Filing Fees (India, 2026)
Filing a TDS return late is more expensive than people expect, because the law stacks a daily fee, a possible penalty, and interest on top of each other. The good news is each one is defined, so you can work out the cost and avoid most of it by filing on time. This guide sets out the TDS return late filing fee, the separate penalty and interest, the TDS rate on machinery hire charges, and what it costs to get a return filed.
- Late filing fee: Rs 200 per day of delay, capped at the total TDS of the return, under the late-fee provision (234E).
- Penalty: a separate penalty for non-filing or wrong details (271H), often avoidable if you pay and file within a window.
- Interest: a monthly rate for late deduction and a higher monthly rate for late deposit, counting part of a month as a full month.
- Machinery hire: TDS at 2% under 194-I (land and buildings are 10%).
- Filing cost: no government fee to file; you may pay software or a professional per-return charge.
- Best defence: deposit TDS by the monthly date and file the return on time.
01The daily late filing fee
The late filing fee for a TDS return is charged under the late-fee provision (commonly cited as section 234E). It is Rs 200 for each day the return is delayed, running from the due date until the day you file.
- The fee runs per day of delay, not per deductee or per record.
- It is capped at the total TDS amount of that return, so it cannot exceed the tax the return reports.
- It must be paid before the return is accepted; an unpaid fee blocks the filing.
The fee cannot be waived like a penalty
The Rs 200 per day late fee is a fee, not a penalty, so it generally cannot be waived for reasonable cause the way a penalty sometimes can. The practical way to avoid it is simply to file on time.
02Penalty for not filing
Beyond the daily fee, a separate penalty can apply for not filing a TDS return at all, or for filing it with wrong details. This penalty (commonly cited as section 271H) ranges from a minimum to a maximum amount.
Unlike the daily fee, this penalty can often be avoided if you deposit the TDS, the late fee and interest, and file the return within a set time. So acting quickly once you are late limits the damage.
03Interest on late deduction or deposit
Interest is different again. It applies when the TDS itself was deducted or deposited late, not just when the return was filed late.
| Default | Interest (confirm current rates) |
|---|---|
| TDS deducted late | A monthly rate from the date it should have been deducted to the date it is deducted |
| TDS deducted but deposited late | A higher monthly rate from the date of deduction to the date of deposit |
Interest runs for a part of a month as a full month, so even a few days into a new month costs a whole month of interest. Deposit the TDS by the monthly due date to avoid it.
04TDS on hire charges of machinery
People often reach this topic from a related question: what rate of TDS applies to machinery hire charges. Hire of plant, machinery or equipment is rent under the TDS-on-rent rule (section 194-I), and it carries the lower rent rate.
- Hire charges for plant, machinery or equipment: TDS at 2% under 194-I.
- Rent of land, building, furniture or fittings: TDS at 10% under 194-I.
- No TDS until the yearly rent to that party crosses the 194-I threshold.
So machinery hire is a 2% deduction, and that TDS is then reported in the quarterly return whose late fee and interest are described above.
05What it costs to file a TDS return
The government does not charge a fee to file a TDS return itself; the costs above are only for being late. What you may pay is a professional or software charge to prepare and file it.
- Do it yourself: free on the portal using the department utilities, if you are comfortable with the process.
- Software: a subscription for return-preparation software.
- Professional: a per-return fee, which varies with the number of deductees.
For how filing costs compare across tax work, see income tax return filing charges, and for the GST annual return late fee, see GSTR-9 late filing fees.
06How Claw Tax helps
Claw Tax and Accounts is an online tax, GST and accounting service for India that connects you with a verified chartered accountant at a fixed, published price, with a Claw reviewer checking every filing before it is submitted.
Late fees, penalties and interest on TDS all stem from the same thing: a return deposited or filed after its due date. A single clean return you can file yourself for free on the portal, but many deductees, corrections and a quarterly calendar are where delays and errors creep in. With Claw Tax and Accounts, a verified chartered accountant prepares and files your TDS returns at a fixed, published price, a Claw reviewer checks each return before it is uploaded, and reminders go out before every quarterly due date so the Rs 200 per day fee never starts.
This is an online service, and it is not tax advice; a verified CA handles your specifics.
07Frequently asked questions
What is the late filing fee for a TDS return?
The late filing fee is Rs 200 for each day the TDS return is delayed, under the late-fee provision (commonly section 234E). It runs from the due date to the day you file, and it is capped at the total TDS amount of that return, so it cannot exceed the tax the return reports. The fee must be paid before the return is accepted.
Can the TDS return late fee be waived?
Generally no. The Rs 200 per day charge is a fee, not a penalty, so it usually cannot be waived for reasonable cause the way a penalty sometimes can. It is capped at the TDS amount of the return, but within that cap it is payable. The only reliable way to avoid it is to file the return by its due date.
Is there a penalty for not filing a TDS return?
Yes, separate from the daily fee. A penalty (commonly section 271H) can apply for not filing a TDS return or filing it with incorrect details, within a defined range. Unlike the daily fee, this penalty can often be avoided if you deposit the TDS, the late fee and interest, and file the return within a set time, so acting quickly once you are late limits the cost.
What is the TDS rate on hire charges of machinery?
Hire of plant, machinery or equipment is treated as rent under section 194-I and carries TDS at 2%. Rent of land, buildings, furniture or fittings is deducted at 10% under the same section. No TDS is deducted until the yearly rent paid to that party crosses the 194-I threshold, so confirm the current threshold before deducting.
Is there interest on top of the late filing fee?
Yes. Interest applies when the TDS itself was deducted or deposited late, which is separate from the return being filed late. There is a monthly rate for deducting late and a higher monthly rate for depositing late, and part of a month counts as a full month. So late TDS can carry a daily late fee, a possible penalty, and interest together.
Does it cost money to file a TDS return?
The government does not charge a fee to file a TDS return itself; the costs discussed here are only for filing or depositing late. You may pay for return-preparation software or a professional fee to prepare and file the return, which varies with the number of deductees. Filing on time keeps the only real costs to that preparation charge.