TDS – Due date, Interest & Penalty Provisions CA Naresh Jakhotia

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TDS

One of the main compliance in the Income Tax Act – 1961 is with regard to Tax Deduction At Source (TDS) provisions. There are lot of questions I keep receiving with regard to TDS, as to the due date for payment of TDS, whether the due date is different for different categoris of taxpayer or same due date is applicable for all types of assessees, whether it vary for salaried and non-salaried cases

These are some of the common questions. Let us discuss about all

  • The due dates for the payment of the deducted TDS is on or before 7th of next month. These due dates are applicable to all non-Government assesses and also to Government department who deposit tax with Challan. But, for government department who do not make the payment with challan, the due date for payment of TDS will be the same day on which the amount is deducted.

In short, the month-wise due date is as under:

Month Due date of TDS

(Except Govt. Department which is not making payment without Challan)

April  7th of May
May  7th of June
June  7th of July
July   7th of August
August   7th of September
September   7th of October
October   7th of November
November   7th of December
December   7th of January
January 7th of February
February 7th of March 
March 30th of April

There are different forms for filing TDS Returns for different categories and different nature of payment, as under:

are applicable to different cases:

  1. Form 24Q: This is the TDS quarterly return to be filled out by the deductor ( or employer) for all the deductions made in a salaried case.
  1. Form 26Q: This is the TDS quarterly return to be filled out by the deductor for all the deductions made in the non-salaried case.
  2. Form 27Q: This is the TDS quarterly return to be filled out by the deductor for all the deductions made in the case of NRIs.
  3. Form 27EQ: This is the TCS quarterly return to be filled out by the deductor.

The due dates are different for different quarters. The same is compiled as under:

Quarter Form 24Q and 26Q Form 27Q Form 27EQ
April to June 15th July 15th July 15th July
July to September 15th October 15th October 15th October
October to December 15th January 15th January 15th January
January to March 15th May 15th May 15th May

The most important part is with regard to late payment fee if there is a delay in filing and filing

  1. Fees for delay in deduction:
    In the case when the TDS is not deducted on the specific due date  then interest will be applicable @ 1% per month from the date when it should have been deducted.
  2. Fees for delay in payment of deducted amount:
    Interest rate is little higher if there is a delay in deposit. In the case when the TDS deducted on time but is not paid by the specific due datethen interest will be applicable at a rate of 1.5% per month from the date when it should have been paid.
  3. Fees for the delay in furnishing the statements: The dealy in filing of TDS return attracts late fee (not named as “penalty”). In all such cases where there is a delay in furnishing the e-TDS statement, a mandatory fee of Rs. 200 per day will be applicable. The total fees should not exceed the total TDS amount of that quarter. The late filing fee should be paid before filing such delayed eTDS statement.
  4. Failure to file eTDS statement delaying more than a year or furnishing incorrect details in the statement filed like PAN, Challan and TDS Amount etc, will result in a penalty ranging from Rs. 10,000 to one lakh.

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