Relief from filing of quarterly TDS Return & not in payment of TDS: : Covid – 2019

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Relief from filing of quarterly TDS Return & not in payment of TDS: : Covid – 2019

The due date of filing TDS return for the last quarter of FY 2019-20 is due on 31.05.2020.

The question arises whether it is now 31.05.2020 or stands extended to 30th June by virtue of Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31.03.2020.

The relevant part of the ordinance which one need to read is produced hereunder:

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It may be noted that as per Para 3(1)(b) the Ordinance ,where any limit has been specified in specified Act which falls during the period from 20th day of March 2020 to 29th day of June 2020 , for the compliance of –furnishing of any return under the provision of specified Act , then the time limit for completion shall stand extended to the 30th of June 2020.

 In short, by virtue of above ordinace, the date is undeniably extended to 31st May 2020. However, the relief is there only in filing of the TDS return. There is no immunity from the payment of TDS. If there is a delay in payment of TDS, there will be an interst cost attached to it.

As per Para 3(2) of the said Ordinance, Where any due date has been specified under the specified Act for payment of any amount towards tax which falls during the period from 20th day of March 2020 to 29th day of June 2020 and such amount has not been paid on or before 30th June 2020, then notwithstanding anything contained in this Act, Interest shall be levied in respect of such amount for the period of delay not exceeding  three-four percentage (.75%) for every month or part thereof

However , there will not be any penalty and  prosecution in respect of such amount for the period of delay .

Explanation – For the purpose of this sub section the period of delay means the period between the due date and the date on which the amount has been paid

The relevant part of the ordinance is produced hereunder:

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In short, it is aptly clear that the date of filing TDS quarterly return which was 31st May is extended to 30th June 2020. However, the date of TDS payment has not been extended. And so, all the TDS has to be paid within allotted time. The delay in deposit of TDS will be subject to interest @ .75% for every month of delay.

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