Filing TDS Return

It is every taxpayers’ obligation to file his/her TDS return in case their TDS has been deducted. Also, the timely filing of these returns is mandatory along with the submission of important information to the income tax department which includes TAN (Tax Deduction and Collection Account Number), Permanent Account Number, the amount deducted, TDS payment, kind of payment, etc. If the filing of these returns gets delayed, the taxpayers have to file returns with late filing fees. So it's better to keep the TDS filing due dates in mind along with the required documents.

TDS Return Filing Due Dates for FY2019-20

TCS Returns filing Due Dates for FY2019-20.

If the TDS deposition gets delayed and any error occurred while filing TDS return, the taxpayer would be liable to pay the following penalties. Look here SAG-Infotech provides Gen TDS software free download for TDS return filing.

Late Filing Fees

If you fail to file TDS return within the provided timeline then you will be liable to pay a late filing fee of Rs. 200 per day. And, it will continue to be charged Rs. 200 per day from the late date until the date you filed your return. However, the income tax department has limited the maximum fees to pay to the TDS amount.

The complete scenario of charging late filing fees can easily be understood by the example given below:

Like, a taxpayer has to pay a TDS amount of Rs.7,500 on May 14 but he managed to pay it on November 19. Thereby, he is subjected to pay late filing fees for a total of 190 days in between the aforementioned dates. The calculated late filing fees for 190 days will be Rs. 38,000, charged at the rate of Rs. 200 per day. However, if your payable TDS amount is Rs. 7,500 then you will have to pay only Rs. 7,500 as your late filing fees. But you will be subjected to pay interest on the penalty amount.

TDS Return Penalty

If taxpayers file TDS return after the due dates still there are discrepancies in the return form then the taxpayer will be subjected to pay the following penalties.

The penalty under Section 234E: This section of the Income Tax Act attracts a penalty of Rs. 200 per day from the deductor until payment of TDS. However, the maximum penalty fees are limited to the TDS amount.

The penalty under Section 271H: This section of the Income Tax Act pulls penalty from the deductor ranging from a minimum of Rs. 10,000 to a vertex of Rs. 1 lakh in case there is any discrepancy in the TDS form likewise incorrect PAN, incorrect payable tax amount, etc.

While no penalty will be charged under Section 271H of the Income Tax Act, if TDS/TCS returns are not filed within the given due dates, provided that the given below conditions are applicable.

The government get credited with the TDS/TCS amount.
If the TDS/TCS returns are filed before the end of 1 year from the due date.
If payment of the interest and late filing fees (if any) have been deposited to the government’s credit.

TDS Payment Interest Rate

Section 201(1A) of the Income Tax Act, 1961 attracts an interest at the rate of 1% per month, if the deduction of tax at source not occurred, either partly or fully, from the date on which the tax was subjected to be deducted to the date on which it is actually deducted. In other cases, if the deduction of tax at source has taken place though it has not been paid to the government either partly or fully, the deductor will be liable to pay interest at 1.5% per month from the date on which tax was subtracted to the date it was paid.

For an easy understanding of the applicable interest rate on TDS payment, an example is given below:

If an individual is liable to pay the TDS amount of Rs. 7,500 and the amount has subtracted on January 14, while it is paid to the government on May 18, the calculated interest that has to be paid to the government will be Rs.7,500 x 1.5% per month x 5 months = Rs.562.5.

Keywords : TDS Return Filing TDS Return Software tds software Free Download TDS Software