TDS denotes tax deducted at source, while TCS denotes tax collected at source. If an individual makes a payment to the recipient, TDS must be deducted at a specified rate and deposited with the government, according to the Income Tax Act.
In the case of the TCS, the individual accepting the payment is responsible for collecting tax from the payer and depositing it with the government.
The due dates for depositing the TDS and TDS return filing for the financial year 2023-24 for the deductors are as follows-
Quarter Ending (for the year 2023) |
Month of Deduction (for the year 2023) |
Due Dates for Depositing TDS (FY 2023-24) |
TDS Return Due Date (FY 2023-24) |
June 30th, 2023 |
April 2023 |
7th May 2023 |
July 31st, 2023 |
May 2023 |
7th June 2023 |
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June 2023 |
7th July 2023 |
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September 30th, 2023 |
July 2023 |
7th August 2023 |
October 31st, 2023 |
August 2023 |
7th September 2023 |
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September 2023 |
7th October 2023 |
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December 31st, 2023 |
October 2023 |
7th November 2023 |
January 31st, 2024 |
November 2023 |
7th December 2023 |
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December 2023 |
7th January 2023 |
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March 31st, 2024 |
January 2024 |
7th February 2024 |
May 31st, 2024 |
February 2024 |
7th March 2024 |
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March 2024 |
7th April 2024 (for tax deducted by govt. office) |
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30th April 2024 (for other deductors) |
To make a payment of tax deducted at the source, follow the steps outlined below. It should be remembered that without a valid TAN number, TDS payments cannot be made.
Tax-deductible at source occurs where reimbursement is made to the recipient, and the tax withheld is deposited by the giver directly with the state. TDS filing is required of anyone who engages in payment transactions, necessitating a variety of government enforcement measures.
TDS means that the income producer pays their taxes on schedule, but not the person who deducts the fee. For example, if an employer deducts tax on an employee’s behalf, it means that the employee has paid the tax, but it does not imply that the employer has paid the same.
As a result, fines and late payment fees play a part.
On unpaid bills or overdue checks, we come across terms like late payment penalties, fines, and so on in our daily lives. The Income Tax Department (ITD) charges a penalty or late payment fee to a person who is not in accordance with the IT law or who is unable to fulfil his or her tax obligations promptly.
Similarly, if a deductor or contractor who deducts TDS (Tax Deducted at Source) from an employee’s wages fails to pay TDS to the government or fails to file related tax records to the IT department on time, fines for late or non-payment of TDS are imposed.
The TDS late payment penalty for late filing of quarterly TDS/TCS returns by the Deductor to the ITD was addressed in Section 234E of the Income Tax Act, which went into effect on July 1, 2012.
In the case of late filing of TDS/TCS returns, a late fine of Rs 200 per day must be charged to the Income Tax Department, and the fine will be imposed on every single day of delay before the late payment charges exceed the value of TDS and not more.
Let’s look at a case to grasp it better.
If you have to pay INR 5000 in TDS on March 1st, but you pay it on June 30th, the cumulative penalty will be INR 200 x 122 days = INR 24,400. Since the assessed penalty is greater than the real TDS number, i.e. INR 5000, you will only be eligible to pay INR 5000 in late filing fees.
In addition to the penalty, debt will be added to the total. The debt is paid by the taxpayers before the TDS return is filed. Section 201 A contains information on interest rates.
Since interest is measured over months rather than days, a portion of a month would be treated as though it were the entire month.
If TDS returns are filed after the due date, or there are errors in the return forms, the following penalties will apply:
The deductor will be penalised Rs.200 every day till TDS is paid under this section of the Income Tax Act, but the penalty sum cannot exceed the TDS amount.
A penalty ranging from Rs.10,000 to Rs.1 lakh would be imposed if inaccurate details, such as incorrect PAN, incorrect tax amount, and so on, are provided.
If a person fails to pay to the credit of the Central Government — The tax deducted at source by him as prescribed by or under the provisions of Chapter XVII-B, he shall be punished by rigorous imprisonment for not less than three months but not more than seven years, as well as a fine.
During Covid-19 Pandemic (Old Update) - Finance Ministry TDS/TCS Updates Due to Covid19 The government will inject Rs 50,000 crores of liquidity by lowering TDS prices for non-salaried specified payments rendered to citizens and TCS rates for specified receipts by 25% of the current rates. For late payments of accelerated tax, self-assessment tax, standard tax, TDS, TCS, equalization fee, STT, CTT there is a lowered interest rate of 9% instead of 12% /18% per annum (i.e. 0.75% per month instead of 1/1.5% per month) will be paid. There will be no late fee or punishment if you are late during this time frame. |