How to Make TDS Late Payment Interest Calculator in Excel

Looking for ways to make a TDS late payment interest calculator in Excel? Then, this is the right place for you. Here, you will find a simple step by step way to make a TDS late payment interest calculator in Excel.

What Is TDS?

TDS (Tax Deducted at Source) is a part of tax that any person has to pay under Income Tax Act when making any payment such as salary, rent, commission etc. There is a specific payment period in which that person has to pay the TDS amount. Otherwise, a specific rate of interest will be added monthly or annually for late payments.

Download Practice Workbook

You can download the workbook to practice yourself.

TDS Late Payment Interest Calculator.xlsx

Step by Step Procedures to Make TDS Late Payment Interest Calculator in Excel

Suppose, you have a dataset containing the Name, Date of Invoice, Due Amount, Credit Period, Payment Date and Interest Per Year of some citizen. They did not pay their TDS amount on the Date of payment. So, now they have to pay interest for late payments. You can calculate this interest amount by making a TDS late payment interest calculator by going through the steps given below.

Step 1: Calculating Days Over Due for Payment

In the first steps, you will have to calculate the Days Overdue for payment. To do that follow the steps given below.

In the beginning, select Cell G5 and insert the following formula.

=F5-C5-E5

Then, press Enter.
After that, drag down the Fill Handle tool to AutoFill the formula for the rest of the cells.

Here, in the formula, we subtracted the value of Payment Date in Cell F5 by the values of the Date of Invoice and Credit Period in Cell C5 and Cell E5 respectively.

Finally, you will get all the values of Days Over Due.

Step 2: Determining Late Payment Interest in Excel

In the second step, we will show you how you can determine the value of Late Payment Interest in Excel. Follow the steps given below to do it on your own.

Firstly, select Cell I5 and insert the following formula.

=(D5*H5)*G5/365

After that, press Enter and drag down the Fill Handle tool to AutoFill the formula for the rest of the cells.

Here, in the formula, we first multiplied the value of the Due Amount in Cell D5 by the value of Interest Per Year in Cell H5. Then, we multiplied the resultant value by the value of Days Over Due in Cell G5 and divided it by 365 as 1 year= 365 days and here we are calculating annual payment interest. In the case of calculating monthly payment interest, divide the value by 30 as 1 month= 30 days.

Now, you will get all the values of Late Payment Interest.
That’s how you can make a TDS payment interest calculator in Excel.

Practice Section

In the article, you will find an Excel workbook like the image given below to practice on your own.

Conclusion

So, in this article, we have shown you ways to make a TDS late payment interest calculator in Excel. I hope you found this article interesting and helpful. If something seems difficult to understand, please leave a comment. Additionally, please let us know if there are any more alternatives that we may have missed.