Due Dates for TDS Payment & Penalties Applicable on Failure
TOPICS : Business
Due dates for TDS payment to be made every quarterNote: Amount deducted as per the provisions of Chapter XVII-B by a government official without challan (Treasury Challan) should be credited to government account on the same day when TDS is deducted.
Penalties applicable on non-payment of TDS by due dates
- Late filing fee (for not file by the due dates)
- Interest (for not depositing TDS on time)
- Penalty (for not filing TDS within one year from the deadline)
The late TDS filing feeAs per section 234E, a fine of Rs 200 per day until the return is filed, is applicable.
Interest On TDSNote: The above-mentioned interest is payable before the filing of TDS returns Via Gen TDS Software. According to Section 201(1A) for late payment of TDS after deduction, interest is also payable for late deposit of TDS. Interest @ 1.5% per month, from the date when TDS was deducted to the date when TDS is paid, is applicable. Note: Interest on late payment of TDS is computed month-wise and on the basis of the number of days. Part of the month is treated as a full month. For example Suppose your TDS payable is INR 5000 and the, when TDS is deducted, is 13th January. The date, when you paid TDS, is 17th May. So, the interest applicable to you is INR 5000 x 1.5% p.m. x 5 months = INR 375.
- Income Tax Act, 1961 has given the definition of a month. However, the cases in the High Court treat a, a period of 30days as a month and the ish calendar month is treated as considerable.
- Interest is calculated from the date when TDS was deducted and not from the date when TDS became due.
Penalty on TDSThe penalty, equivalent to the amount of TDS/ TCS which had to be deposited but not deposited, is imposed.
1. Prosecution under section 276BWhen an individual fails to credit the TDS deducted to the account of the Central Government, it is non-adherence to the provisions of Chapter XVII-B which leads to imprisonment for a period not less than three months. However, the term of imprisonment may extend to seven years along with fine. Penalty on Filing of TDS Return after the due dates
2. The penalty under section 234EA penalty of INR 200 per day is applicable to the deductor and it continues till the date when deductor finally pays off the TDS. Whatever the case may be, the amount of Penalty can not be more than the TDS amount for which statement is to be filed.
3. A penalty under section 271HA penalty of INR 10,000 is imposed by assessing officer on an individual who was supposed to file the TDS statement but he failed to do so by the due date.
- This penalty may get higher till the limit of INR 1,00,000.
- This penalty u/s 271H os imposed along with the penalty u/s 234E.
- Cases related to the erroneous filing of TDS return also treated u/s 271H.
- When TDS or TCS is credited to the government’s account.
- When late filing penalties and interests are paid to the government.
- When TDS or TCS return is filed before the end of one year from the prescribed due date.
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