TDS Payment Due Date for FY 2024-25

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.

In this guide, you will learn the TDS payment due dates, penalties for late filing of TDS and more.

TDS Payment Due Dates

The due dates for depositing the TDS and TDS return filing for the financial year  2024-25 for the deductors are as follows-

TDS Payment Return Due Date for Sunday or Public Holidays

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 various government enforcement measures. 

How to Make TDS Payment Online

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. 

• TDS Payment can be made using Challan No. ITNS 281. A copy of the Challan has been attached for your convenience.
• Input your TAN number, and the validity of the TAN entered for TDS payment will be checked online.
• If the taxpayer’s TAN is considered to be legitimate, he or she will be able to fill out other challan particulars, such as the accounting head for which the invoice will be made, the name and address of the TAN, and so on.
• An approval screen will appear after the data is sent. If the taxpayer accepts the information entered in the challan, the page will be redirected to the bank’s net-banking page, where the payment will be made, as stated in the challan.
• The taxpayer will now be allowed to log in to the bank’s net banking website and make the TDS payment using the user ID and password assigned by the banker.
• A challan counterfoil containing the Challan Identification Number (CIN), payment information, and the bank name from which the e-payment was made will be shown after a satisfactory TDS Payment. The payment has been received, as shown by the counterfoil. After a week of using the CIN to make a charge, you can check the status of the challan in the NSDL-TIN website’s “Challan Status Inquiry.”

TDS Return Filing Due Date Penalties

TDS means that the income producer pays their taxes on schedule, 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.

Late Filing on TDS Return Due Date

In the case of late filing of TDS/TCS returns, a late fine of Rs 200 per day must be charged to the 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.

Interest on Late Payment of TDS

It is important to ensure that the interest is paid before filing the TDS return. 

Under Section 201(1A) of the Income Tax Act, if TDS is deposited late after deduction, interest is levied at a rate of 1.5% per month. This interest is calculated from the date when TDS was deducted to the actual date of deposit, considering each month as a full period of 30 days. 

For instance, if a TDS of ₹4,000 was deducted on 14th January 2024 and deposited on 15th May 2024, the interest calculation would be ₹4,000 x 1.5% p.m. x 5 months (Jan-May) = ₹300.

The term ‘month’ is not precisely defined in the Income Tax Act, of 1961, but court cases suggest it should be considered as a period of 30 days, not a calendar month. The interest begins accruing from the date of the TDS deduction, not the due date for the deposit.

Suppose your TDS was deducted on 22nd February 2024 with a due date of 8th March 2024, and was deposited on 9th March 2024 (one day late), the interest would apply for 2 months. This means the interest calculation will be 1.5% p.m. x 2 months = 3% on the TDS amount.

Penalty for Late Filing of TDS Payment for FY 2024-25

If TDS returns are filed after the due date, or there are errors in the return forms, the following penalties will apply:

• Penalty under Section 234E

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.

• Penalty under Section 271H

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.

Prosecution [Sec 276B]

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.

Understanding the TDS payment due dates is crucial for taxpayers to ensure compliance with Income Tax regulations. Timely deposit of TDS ensures avoidance of interest and penalties.

It is essential to mark these dates on your calendar and adhere to them diligently to maintain financial discipline and avoid legal consequences related to tax deductions.

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