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.

**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. Letâ€™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**â€™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.

**Read More:** How to Make TDS Late Payment Interest Calculator in Excel

**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.

**Read More:** Create Late Payment Interest Calculator in Excel- Download for Free

**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.

**Read More:** How to Create Prejudgment Interest Calculator in Excel

**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.

**Read More: **Create a Post-Judgement Interest Calculator in Excel

**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**.

**Read More: **Make Service Tax Late Payment Interest Calculation in Excel

**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.

**Read More: **How to Create FD Interest Calculator in Excel

**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.

`=â€™Late Depâ€™!D6+â€™Late Depâ€™!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.

**Read More:** Create a Simple Interest Loan Calculator with Excel Formula

**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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