How to Create TDS Interest Calculator in Excel

While working with Microsoft Excel, we may use the formulas to create different calculations. To calculate late fees, withholding, or late filing penalty for a TDS report, use the TDS interest calculator. In this article, we will demonstrate step by step procedures to create TDS interest calculator in Excel.

Download Practice Workbook

You can download the template of the calculator for free.

TDS Interest Calculator.xlsx

What Is TDS?

TDS (Tax Deducted at Source) is a tax deducted from payments made for salaries, rent, commissions, and other items under the Income Tax Act. That person must make the TDS payment within a specific time frame. Otherwise, monthly or yearly interest at a particular rate will be charged for late payments.

To calculate the late payment, deductible, or penalties and interest for a TDS statement, use the TDS interest estimator. Tax breaks on an employee’s wages are referred to as TDS. Payments need to be made to the deductee by the deductor. This ensures that the federal government collects consistently reducing the burden of the income tax return for dedicatees.

Types of TDS

TDS are gathered after your earnings surpass a predetermined threshold. TDS rates that apply to various forms of payments:

Payment Type and Section

Banks’ interest – 194A.
Preservation program for senior citizens – 194A.
Horse racing, puzzles, and lotto prizes – 194B, 194BB.
Payout amount for a life insurance policy – 194DA.

Step-by-Step Procedures to Create TDS Calculator in Excel

With regard to processing TDS returns that include interest requests, this article intends to make interest calculation simpler. Let’s follow the instructions to make a TDS interest calculator in Excel.

Step 1: Summary of TDS for Late Deduction

According to section 234E, if an individual fails to submit the TDS statement by the due date specified in this aspect, they will be ordered to pay a fine of Rs. 200 for each day that the delay persists. The sum of late fees cannot be greater than the TDS amount. At first we will see the summary of TDS for late deduction.

First of all, we record all the sections and type in column C and TDS statement for the month of November, December and February.

Secondly, we will select a cell to calculate the amount of TDS. For this, we will use the SUM function. The SUM function is used to add values.
So, we select the cell where we want to see the result. And insert the formula of SUM function.

=SUM(D6:F6)

Further, press the Enter key from your keyboard.

Drag the Fill Handle icon down to duplicate the formula over the range. Or, to AutoFill the range, double-click on the plus (+) symbol.

Finally, we can see that the result of the TDS amount will show in column G.

Now, we need to calculate the total of individual TDS statements as well as the total TDS amount. So, first we will compute this for November-20. So, we select cell D11 and put the formula into that cell.

=SUM(D6:D10)

Hit Enter to see the result.

After that, we will calculate the total of December-20’s TDS.

=SUM(E6:E10)

Press Enter.

Again, for the month of February-20, we will use the SUM function.

=SUM(F6:F10)

Hit the Enter key.

Subsequently, we will compute the total TDS amount.

=SUM(G6:G10)

Hit Enter to see the result.

Step 2: Input Necessary Information

We will input the necessary information in this step.

Firstly, the number of months and the interest rate.
Secondly, we will list the Date of Transaction or Bill Date along with the Date of TDS Deducted or Entry Pass.

Step 3: Summary of Interest for Late Deduction

Now, we will record the summary of interest for late deduction.

Likewise the previous step, first, we record every part and enter the TDS statement for the months of November, December, and February in column C.

Next, we will choose a cell and calculate the TDS in that cell. We’ll employ the SUM function for this.
We then choose the cell where we want to view the outcome. Add the SUM function formula after that.

=SUM(D18:F18)

Press the Enter key on your keyboard once more.

To copy the formula over the range, drag the Fill Handle symbol downward. Alternatively, you can double-click the addition (+) sign to AutoFill the range.

Similarly, we will compute all the totals, as we compute the totals at the first step.

Step 4: Calculate Total Amount

In this step, we will calculate the total amount of TDS and interest. For this, we will use the simple addition formula.

For this, we select the cell D25 and put the formula of addition into that selected cell to compute the total for month of November.

=D11+D23

Press Enter.

Subsequently, we will compute the total for December and February. Also for the total of TDS and interest using the additional formula.

Step 5: Encapsulation of Late Deposit

Interest will be assessed at 1% per month or fraction of a month for late tax deduction and at 1.5% per month or fraction of a month for late tax remittance.

To begin with, likewise the summary of late deduction we will record all the sections and type also the months.
Also the amount of TDS using the SUM function.
And finally, the total of all the individuals.

Step 6: Enter the Required Information

At this procedure, we will put all the necessary data.

First, consider the interest rate and the number of months.
In addition to the Month of Deduction, we will also give the Due Date for TDS Payment.

Step 7: Condensation of Late Deposit

At this point, we will compute the summary of interest of late deposit.

As with the late deduction summary, we will first list all the sections and type the months.
Using the SUM function, add the TDS quantity as well.
Then, the total of each individual is shown last.

Step 8: Determine Total Amount

Now, we will again calculate the total amount of TDS and interest.

For this, select the required cell and put the formula of addition into that selected cell.

Step 9: Precis TDS Interest Calculator

Lastly, we will create the calculator, as we put all the compulsory data into sheets Late Dep and Late Deb. This sheet is mainly the TDS interest calculator which you will find in our excel template.

In the beginning select the cell where we want to put the result. In our case, we will choose cell D5.
Then, insert the formula into that cell.

=’Late Dep’!D6+’Late Dep’!D18

Press Enter key from the keyboard.

After that, drag the Fill Handle icon to copy the formula over the range. Or, double click on the plus (+) sign. This also duplicates the formula.

Following the month May-21, do the same for other months.

Furthermore, we compute the amount of TDS. We will use the SUM function. The SUM function is a built-in function, categories under the Math/Trig Function. This adds each value in a range of cells before returning the total.
So, select the second cell G5, and put the formula into that selected cell.

=SUM(D5:F5)

Hit the Enter key to see the outcome.

Then, drag the Fill Handle icon down to duplicate the formula over the range. Or, to AutoFill the range, double-click on the plus (+) symbol.

Finally, our calculator is ready to use. Now if we change any data from the Late Deb and Late Dep sheet, this will automatically change the calculator data.

Conclusion

The above procedures will assist you to Create TDS Interest Calculator in Excel. Hope this will help you! Please let us know in the comment section if you have any questions, suggestions, or feedback.

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