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Due date to deposit TDS and file TDS Return

Vaishali Dhek 
on 09 April 2020

LinkedIn


Update: The rates of TDS on non-salaried specified payments made to residents has been reduced by 25% for the period from 14th  May 2020  to 31st March 2021 by FM in the Economic Relief Package. 

What is the due date to file TDS Return and Deposit TDS?

TDS(Tax Deducted at Source) is a way to recover income tax from an assessee in the Previous Year itself. Any person who is required to deduct TDS and does not deduct such amount whole or in part or doesn't pay it to the government after deduction is deemed to be an assessee in default.

As per section 200 of the Income Tax Act, 1961 it is the duty of the person liable to deduct TDS to pay TDS to the government and to file TDS Return. This article covers the following:

What is the due date to deposit TDS and file TDS Return

1. What is the due date to deposit tax?

As per Section 200 of the Income Tax Act 1961, it is the duty of the deductor to deposit the TDS to the account of the government within the prescribed period. The due date to deposit TDS has been defined in Rule 30 of the Income Tax Act:

   

Tax Deductor

Period

Due Date

Government Office(With Challan)

and Other Deductors

For any other month

7th of the succeeding month

Other Deductor

For the month of March

30th April for next Financial Year

Please Note: The due date to deposit TDS is the same day when the deduction is made by the government offices if payment is made without the generation of challan.

Rule 30 also states that. "In special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year" as follows:

Due Date to deposit TDS on a quarterly basis:

    

Quarter Ending

Due Date

30th June

7th July

30th September

7th October

31st December

7th January

31st March

30th April

Consequences of Failure to Deduct TDS:

The consequences of failure to deduct TDS is covered in Section 201:

Interest Deduction:

    

Interest on TDS

Period for which interest is to paid

1.5% per month

From the date of deduction to the date of payment

Interest Rates amidst COVID-19 Outbreak:

Reduced rate of interest of 9% shall be charged for non-payment of TDS if the due date falls 20.03.2020 to 29.06.2020 provided TDS is paid by 30.06.2020. Further, no penalty/ prosecution shall be initiated for these non-payments.

2. What is the Due date to file TDS Return?

Rule 31A of the Income Tax Act, 1961 states that every person who is responsible for deduction of tax is liable to file a quarterly statement of deduction of tax as per the following due dates.

Common due dates are now issued for the government as well as other deductors. Earlier there were differential due dates to file TDS statements for the government and deductors.

    

Quarter

Period

TDS Return

First Quarter

April-June

31st July of the Financial Year

Second Quater

July-September

31st Oct of the Financial Year

Third Quarter

October- December

31st Jan of the Financial Year

Fourth Quarter

January-March

31st May of the next Financial Year

 

Due date to file TDS Return for deductor liable to TDS under Section 194-IA, 194-IB, and 194-M:

Sub-rule 4 of rule 31A States, deductors liable to deduct TDS under Section 194-IA, 194-IB, and 194-M are liable to file challan-cum-statement within 30 days from the end of the month in which deduction is made in Form no. 26QB, Form no. 26QC, and Form no. 26QD respectively.

Due date to file TDS amidst COVID-19:

The due date for the filing of the last quarter of the TDS returns for FY 2019-20 as per the existing provisions was May 30, 2020. This is now extended to June 30, 2020. TDS certificates may also be furnished by June 30, 2020.

What is the late fee for the delay in filing of TDS return?

Section 234E states, "Where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The number of late fees, however, shall not exceed the amount of TDS."

 

Penalty for failure to file TDS Return?

In addition to late fees, the deductor is also liable to pay penalty under section 271H. The minimum penalty shall be levied of Rs. 10,000 which can go upto Rs. 1,00,000.

No penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if the deductor meets the following conditions :

1) The tax deducted/collected at source is paid to the credit of the Government along with late fees and interest.
2) The TDS/TCS return is filed before the expiry of a period of one year from the due date specified in this behalf.

Latest Update: Employees should inform their employer regarding their intention to opt for new concessional rates for the purpose of T DS Deduction.

To read the official notification click here.


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