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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.

TDS Payment Due Dates

Month Due Date
April 7th May
May 7th June
June 7th July
July 7th August
August 7th September
September 7th October
October 7th November
November 7th December
December 7th January
January 7th February
February 7th March
March 30th April

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 made between March 20, 2020, and June 30, 2020, a lowered interest rate of 9% instead of 12 percent /18 percent per annum (i.e. 0.75 percent per month instead of 1/1.5 percent per month) will be paid. There will be no late fee or punishment if you are late during this time frame.

According to recent government announcements on TDS, TCS certificates, the department has extended the validity of both lower and zero TCS, TDS certificates until June 30, 2020, in light of the emerging coronavirus pandemic.

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 was 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 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 a variety of government enforcement measures. The government’s next upcoming TDS return filing deadline is approaching. 

TDS Return Filing Due Date Penalties

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 fulfill his or her tax obligations promptly.

Invest in elss funds

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 late payment payments or penalties for late filing of quarterly TDS/TCS returns by the Deductor to the ITD were addressed in Section 234E of the Income Tax Act, which went into effect on July 1, 2012.

Late Filing of TDS Return Due Date

In the case of late filing of TDS/TCS returns, a late fine of INR 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 better grasp it. 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 Payments of TDS 

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.

  • For late payments of accelerated tax, self-assessment tax, standard tax, TDS, TCS, equalization fee, STT, CTT made between March 20, 2020, and June 30, 2020, a lowered interest rate of 9% instead of 12 percent /18 percent per annum (i.e. 0.75 percent per month instead of 1/1.5 percent per month) will be paid. There will be no late fee or punishment if you are late during this time frame.
  • If a portion of the whole amount of tax is not withheld at the source, the TDS/TCS amount is subject to a monthly interest rate of 1% when the interest term begins on the day the tax was deducted and ends on the final date of deduction.
  • When a portion of the whole amount of TDS is not paid, 1.5 percent per month interest is charged on the TDS/TCS amount. The interesting term begins on the deduction date and ends on the payment date.
  • For late payment of TDS after withdrawal, interest at the rate of 1.5 percent per month must be paid (from the day that it was deducted until the final date of deposit).

Since interest is measured over months rather than days, a portion of a month would be treated as though it were the entire month.

Penalty

As a result of the lockdown started in the year 2020, the department had waived all penalty requirements for the duration between March 20th and June 30th, 2020, following Ordinance 2020. A liability equal to the amount that was not deducted/collected or remitted could be levied during the usual course of operation.

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.

TDS Return Due Date – FAQs

Q1. What is the penalty for a late filing fee?

Fee for late filing (Sec 234E) – The deductor will be liable to pay a charge of Rs.200 per day on any day that TDS is not paid. The punishment, however, could not be more than the amount of TDS on which the statement was needed to be filed.

Q2. Were there changes in TDS Due Dates after the pandemic?

With the COVID-19 pandemic shaking the globe in terror and a lockdown looming, businesses are constantly battling to satisfy the requirements of the Income Tax Act.

Q3. What is TDS?

TDS is a form of tax imposed on transfers to persons or businesses where the amount paid exceeds certain thresholds. For example, if a corporation pays a wage to an employee and the money paid is subject to TDS, the company must subtract the relevant tax from the initial amount and deposit it with the Income Tax Department at the time of payment.

Q4. What happens in the case of TDS late filing?

If you fail to pay TDS by the TDS due date, you will be charged a fee of $200 per day before the billing fee equals the TDS return filing number.

Q5. Do I need to have TAN to make TDS payments?

Individuals must have a TAN to make TDS payments and file TDS returns, according to Section 203A of the Indian Income Tax Act. If you don’t already have one, you can get one by filling out Form 49B online.

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