- Interest for Late Deduction: If TDS is not deducted on time, interest is charged at 1% per month or part of the month, calculated from the date the tax was deductible until the actual date of deduction.
- Interest for Late Payment: If TDS is deducted but not deposited timely, interest at 1.5% per month or part of the month is levied from the date of deduction to the date of deposit.