The deductors/payers need to deduct TDS from specific type of payment. Hence they need to keep in mind following TDS Due Dates:
- TDS Deposit Due Dates
- TDS Return Filing Due Dates
Due Dates for TDS Payment through challan
|Sr. No.||Particulars||Due Date for TDS Payments|
|1.||Every month (Except March)||7th of the next month|
|2.||For month of March||30th April of the next year|
Due dates for filing TDS Return
|Q1||April – June||31st July|
|Q2||July – Septemeber||31st October|
|Q3||October – December||31st January|
|Q4||January – March||31 st May|
In case of the sums deducted by an office of the government without challan should deposit the same on the day of deduction.
What are the penalties for late deposit and late filing of TDS Return?
Following are the penalties applicable in case one have not deposited TDS on or before the due date or have not filed the TDS Return in time:
- Late Filing Fee (When TDS Return is filed after the due date)
- Interest (When TDS is not deducted or deposited in time)
- Penalty (When TDS return is not filed within one year from the due date)
Late Filing Fee
When TDS return is not filed on or before the due date, then under section 234E taxpayer will have to pay fine of Rs. 200 per day until the return is filed. Provided that the fine amount shall not exceed the amount of TDS taxpayer needs to pay.
Let’s take an example to gain more understanding:
Mr. A who is an employer forgot to pay TDS of Rs. 8,500 on 15th July. And he paid the same on 21st December. Hence, Late filing fees will be equal to Rs. 31,800 (159 Days* Rs. 200) Or Rs. 8,500 whichever is less.
|Nature of Default||Interest Rate||Time Period for which Interest is Payable|
|Interest penalty on Non Deduction of TDS u/s 201(1A)||1% per month||From the date on which tax was deductible to the date on which such tax is deducted.|
|Interest penalty on Non Payment of TDS after deduction of TDS u/s 201(1A)||1.5% per month||From the date on which tax was deducted to the date on which such tax is actually paid.|
Let’s take an example to understand:
In case your TDS payable is Rs. 10,000 and date of deduction of TDS is 20th April. And TDS is paid on 7th July.
Interest u/s 201(1A)= Rs. 10,000 * 1.5%p.m. * 4 months Rs.600.
Points to be kept in mind while calculating Interest:
- For calculating Interest amount, Interest rate is calculated on monthly basis i.e; part of the month is considered as a full month.
- For calculating the number of months, the date on which TDS was deducted should be considered and not the TDS due date.
- Interest should be paid before filing of TDS Return
Penalty for late filing of TDS return
Penalty Under Section 234E: Penalty of Rs. 200 per day is levied on the taxpayer till the day on which return is filed. Provided that the amount of Penalty should not exceed the amount of TDS payable.
Penalty Under Section 271H: Assessing officer may direct a person who fails to file the return within the due date to pay penalty minimum of Rs. 10,000 which may extend to Rs. 1,00,000. Penalty under this section is also applicable to the cases of incorrect filing of TDS return. Penalty u/s 271H will not be levied in case of delay in filing the TDS/TCS return if following conditions are matched:
- The TDS/TCS is paid to the credit of the Government.
- Late filing fees and interest is paid to the credit of the government.
- The TDS/TCS return is filed before the expiry of a period of one year from the due date specified.
Prosecution Under Section 276B: If a person fails to pay to the credit of the Central Government, The Tax deducted at source by him as required by or under the provisions of Chapter XVII-B, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.
In case your employer has not deposited TDS to the Income Tax Department, it will not be reflected in your Form 26AS. Hence the option of taking a tax credit of the TDS while filing your income tax return isn’t available.
For Senior Citizens aged above 60, TDS will only be deducted if the interest income exceeds Rs.50,000 in a given financial year.