Time limit to Deposit TDS and File TDS Return

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The dates of submitting TDS for every quarter are:

Month of DeductionQuarter endingDue date for TDS Payment through ChallanDue Date for filing of Return from the financial year 2016-17 for All DeductorsDue Date for filing of Return for the financial year 2015-16
*For Govt. DeductorFor Other DeductorFor Govt. DeductorFor Other Deductor
April30th June7th May31st July31st July15th July
May7th June
June7th July
July30th September7th August31st October31st October15th October
August7th September
September7th October
October31st December7th November31st Jan31st Jan15th Jan
November7th December
December7th Jan
January31st March7th Feb31st May15th May15th May
February7th March
March7th April30th April

*All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government without challan (Treasury Challan) should be deposited on the same day of deduction.

In case you have not deposited TDS by the correct date, the following penalties are applicable:

  • Late filing fee (if you do not file by the deadline)
  • Interest (if you do not deposit the TDS amount in time)
  • Penalty (if TDS is not filed within one year of the due date)

 

Late Filing Fee

Under Section 234E, you will have to pay a fine of Rs 200 per day (two hundred) until your return is filed. You have to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS.

For example, say that your payable TDS amount is Rs 5000 on 13th May and you pay it on 17th November (i.e. 189 days, counting 17th November). Then the calculation comes out to Rs 200 x 189 days = Rs 37800, but since this is greater than Rs 5000, you will have to pay only Rs 5000 as the late filing fee. Added to this, you also have to pay interest which is covered in the next section.

 

Interest

SectionNature of DefaultInterest subject to TDS/TCS amountPeriod for which interest is to be paid
201ANon deduction of tax at source, either in whole or in part1% per monthFrom the date on which tax deductable to the date on which tax is actually deducted
After deduction of tax, non payment of tax either in whole or in part1.5% per monthFrom the date of deduction to the date of payment

 

Note: The above interest should be paid before filing of TDS return.

Under Section 201(1A) for late deposit of TDS after deduction, you have to pay interest. Interest is at the rate of 1.5% per month from the date at which TDS was deducted to the actual date of deposit. Note, that this is to be calculated on a monthly basis and not based on the number of days i.e. part of a month is considered as a full month.

For example, say that your payable TDS amount is Rs 5000 and the date of deduction is 13th January. Say you pay TDS on 17th May. Then the interest you owe is Rs 5000 x 1.5% p.m. x 5 months = Rs 375.

“Month” has not been defined in the Income Tax Act, 1961. However, in a number of High Court cases, it has been mentioned that it should be considered as a period of 30 days and not as an English calendar month.

This amount is to be paid from the date at which TDS was deducted, not from the date from which TDS was due.

For example, let the due date of TDS payment be 7th May and you have deducted TDS on 19th April. Say you have not deposited TDS by 7th May. Then you will be required to pay interest starting from 19th April and not 7th May.

Also consider the case in which you deposit tax one month after the due date. Say you have deducted TDS on 1st August. Then the due date is 7th September. Now say you deposit tax on 8th September (i.e. one day after the due date). Then interest is applicable from 1st August to 8th September i.e. for a period of 2 months. You now have to pay interest of 1.5% p.m. x 2 months = 3%.

 

Penalty

 

Equals to the amount that was failed to be deducted/collected or remitted may be imposed.

Prosecution (Sec 276B): If a person fails to pay to the credit of the Central Government,—

  • The Tax deducted at source by him as required by or under the provisions of Chapter XVII-B, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

 

Penalty for late filing of TDS return:

 

  • Penalty (Sec 234E): Deductor will be liable to pay way of fee Rs.200 per day till the failure to pay TDS continues. However penalty should not exceed the amount of TDS for which statement was required to be filed.
  • Penalty (Sec 271H): Assessing officer may direct a person who fails to file the statement of TDS within due date to pay penalty minimum of Rs.10,000 which may extended to Rs.1,00,000.
  • Penalty under this section is in addition to the penalty u/s 234E.
  • This section will also cover the cases of incorrect filing of TDS return.

 

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

  • The tax deducted/collected at source is paid to the credit of the Government.
  • Late filing fees and interest (if any) is paid to the credit of the Government.
  • The TDS/TCD return is filed before the expiry of a period of one year from the due date specified in this behalf.
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