Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2014 Dear sir

I have incorporated a Company in April 2013 but havent filed any TDS return or deducted TDS till date.

Could you please guide me can i deduct TDS now and also file return now.

There is only one expesnse of Rent, where TDS is required to be deducted in my case while being new company there is no other expenses where TDS is required to be deducted

plz guide me on how to file TDS return now for Each quarter as i havent done any thing from TDS point of view.

Guide me plz.

Thanks

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)
Follow

09 April 2014 dear, its not like that if you are company then TDS is deducted on all expense. TDS is required to be deducted and with such a rate as specified in respective TDS provisions. In respect of your rent expense limit of TDS is Rs. 1,80,000 per annum up to which you are not required to deduct TDS.

Mitul Shah

Mitul Shah (Expert)
Follow

09 April 2014 Dear Author,

As per section 201(1A) u have to pay interest @1% from the date on which tax was deductible to the date on which tax is actually deducted, & interest @1.5% from the date on which tax was actually deducted to the date on which tax is actually paid.

You can pay TDS amount with interest and file TDS return for previour quarters.

Further Where a person fails to furnish quarterly TDS/TCS return, he shall be liable to pay , by way of fee, a sum of Rs.200 for every day during which the failure continues. However, the fees shall not exceed the amount of tax deductible/collectible. This fees will be in addition to other consequences under the act. After July 1, 2012 it will not be possible to submit belated quarterly TDS/TCS return without payment of fees under section 234E.

I hope this info will provide help to you.
Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2014 Dear

All this section I have already studied,, I was asking for the practical help.

How can i avoid such penalties. Can I file only q4 return and show all the details so that i can save myself from penalty from everyday.

Only Rent comes under purview of TDS and other expenses are not much or below exemption limit. How can i deal with Rent for TDS purpose in Return and Deduction matter.

Hope for practical way rather than mentioning Section.

Thanks

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
Follow

27 July 2025 Got it — you want **practical steps** on how to deal with TDS now since you haven’t deducted or filed any TDS returns so far, and you want to avoid or minimize penalties, especially given your only expense is rent.

Here’s a straightforward practical guide:

---

### 1. **Check if TDS was actually deductible on Rent**

* TDS on Rent under **Section 194-I** is required only if **rent paid exceeds ₹1,80,000 in a financial year**.
* If your total rent paid from April 2013 to March 2014 is **less than ₹1,80,000**, **no TDS deduction is required**.
* If more than ₹1,80,000, you should have deducted TDS @10% on the rent amount exceeding ₹1,80,000.

---

### 2. **If TDS was deductible but not deducted**

* Calculate how much TDS should have been deducted on rent paid.
* Deduct TDS **now immediately** from any future payments or recover it from the landlord (if possible).
* Deposit the TDS amount with the government along with interest under **Section 201(1A)**:

* 1% per month from the date when TDS was deductible till date of actual deduction.
* 1.5% per month from the date of deduction till date of payment.

---

### 3. **File Quarterly TDS Returns for the missed quarters**

* You **cannot file only Q4 return** and show all previous quarters in it. You need to file **separate returns for all quarters** of the financial year.
* File **TDS returns for all the missed quarters** even if the TDS deducted is now being deposited late.
* Use the **latest RPU (Return Preparation Utility)** from NSDL/TIN to file.
* While filing late returns, you will have to pay a **late fee (penalty) under Section 234E** — Rs 200 per day delay, capped to the TDS amount.

---

### 4. **How to reduce penalty**

* Unfortunately, there is **no waiver** for late fees under Section 234E.
* However, if you file the returns and deposit the TDS along with interest as soon as possible, the penalties will stop increasing.
* You can write a **letter/request to the Assessing Officer** explaining the genuine reasons for delay — sometimes, AO may consider leniency.

---

### 5. **Regarding Other Expenses**

* For expenses other than rent, if payments do not exceed threshold limits (like ₹30,000 for professional fees or ₹5,000 for commission etc.), no TDS is required.
* Hence, if those payments are below thresholds, no action needed.

---

### 6. **Summary Action Plan**

| Step | Action |
| ------ | ----------------------------------------------------------------------------------- |
| Step 1 | Check if rent exceeds ₹1.8 lakh — if no, no TDS deduction required |
| Step 2 | If yes, calculate TDS, deduct immediately (or recover), deposit TDS + interest ASAP |
| Step 3 | File TDS returns for **all quarters** (even if late), pay late fees |
| Step 4 | Inform landlord and adjust future payments accordingly |
| Step 5 | Keep record of interest and late fees paid for future reference |

---

If you want, I can help you draft the **TDS return filing process step-by-step** or provide guidance on calculating interest and late fees too. Would you like that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now