TDS Return on NRI Property - Last Date - Income Tax

I bought a residential property from an NRI. As the consideration amount was more than 50 lacs, TDS @ 22.88% was deducted (u/s 195) upfront and deposited on 24-Mar-2021. The sale deed was signed on 29-March-2021 at sub-registrar's office. However, after signing the documents and completion of the formalities at the sub-registrar's office, two employees at the office and my lawyer whom I hired were down with Covid-19. Therefore there was a delay in registering the sale deed. I got a confirmation about the completion of registration process on 10-May-2021. Index-2 shows 29-March-2021 as signing date but 10-May-2021 as registration date. Now I need to file TDS return. My questions are:

01. Which date to consider for filing TDS return? Date on which TDS was paid or the date on which sale deed was signed or the date on which index-2 was available or any other date?

02. What would be the last date of filing TDS return in my case?

03. If I file my TDS return tomorrow, does it qualify as late filing? Any penalty applicable if late filing?

04. I came to know that CBDT has extended last date of filing TDS returns till 31-May-2021. Is the extension given by CBDT also applicable to my case?

Hey Varun! Let me help you with your TDS return questions on purchase of property from an NRI.

Your Scenario Recap:

Bought residential property from NRI.
TDS @ 22.88% deducted and deposited on 24-Mar-2021.
Sale deed signed on 29-Mar-2021.
Actual registration delayed due to COVID, completed on 10-May-2021.
Need to file TDS return (Form 27Q for NRI property payment).

1. Which date to consider for filing TDS return?

Date of Deduction of TDS: TDS return should be filed based on the date on which TDS was deducted or deposited.
Since you deducted and deposited TDS on 24-Mar-2021, that is the relevant date for return.
Sale deed signing or registration date does not impact the TDS return filing date.
So, your TDS return (Form 27Q) should reflect the TDS deposited for March 2021 quarter.

2. What is the last date of filing TDS return?

For quarter ending 31 March, the original due date to file TDS return (Form 27Q) is 31 May of the same year (FY 2020-21).
So, the last date is 31 May 2021.

3. If you file TDS return tomorrow (after 31 May 2021), will it be late?

Yes, if you file after 31 May 2021, it will be a late filing.
Late filing penalty can apply under Section 234E at Rs. 200 per day of delay.
Also, penalty under Section 271H can be levied up to Rs. 10,000 for late filing.

4. Is CBDT extension applicable?

CBDT did announce extensions of TDS return filing deadlines for FY 2020-21 due to COVID.
For Quarter 4 (Jan-Mar 2021), the last date was extended to 31 May 2021.
So, you should file by 31 May 2021 (extension already given).
If you are filing after that, it will be late filing.

Summary Table

Question	Answer
Date to consider for filing	Date of TDS deduction/deposit: 24-Mar-2021
Last date for filing return	31 May 2021 (extended due to COVID)
Late filing if filed after	Yes, after 31 May 2021
Penalty for late filing	Rs. 200/day (Section 234E) + penalty up to Rs.10,000 (Section 271H)
CBDT extension applicable?	Yes, 31 May 2021 is the extended deadline

My suggestion:

File your TDS return ASAP (if not filed yet) to avoid further penalties.
Ensure all details match with your TDS deposit challan and sale deed information.