The assessee who has deducted the TDS at the time of incurring any expenditure is liable to make TDS payment. The due date for payment of TDS varies for Government and Non-Government taxpayers. Read the complete article to know about, Due Dates, Interest on Late Payment of TDS, Penalty, for Not filing TDS, Late filing fee etc.
TDS Payment Due Date
The TDS return Due Date for different categories like Non-Government Tax Payers, Government Taxpayers and taxpayers who have any special permission from Assessing Officer is as follows.
TDS Payment Due Date in case of Non-Government Taxpayer
|Months||TDS Payment Due Dates|
|Payment||e-Return Filing||Issue of Certificate|
|April||7th May||15th July||30th July (Other than salary)|
|July||7th August||15th Oct||30th Oct (Other than salary)|
|October||7th November||15th Jan||30th Jan (Other than salary)|
|January||7th February||15th May||30th May, Others
31st May, Salary
TDS Payment Due Dates in case of Government Assessee
|S. No.||Particulars||Due Dates of TDS Payment|
|1.||Tax Deposited without Challan||Same Day|
|2.||Tax Deposited with Challan||7th of next month|
|3.||Tax on perquisites opted to be deposited by the employer||7th of next month|
Quarterly Payment of TDS
Quarterly Payment of TDS for taxpayers who have special permission from AO (Assessing Officer).
|S. No.||Quarter ends on||Due Date of TDS Payment|
|1.||30th June||7th July|
|2.||30th September||7th October|
|3.||31st December||7th January|
|4.||31st March||30th April|
What happens if we haven’t filed TDS return on time?
If the taxpayer has not deposited TDS within the time, then the following are applicable.
- If you have not filed the TDS by the deadline, then the Late filing fee is applicable.
- If you have not deposited the TDS amount in time, then the Interest on late payment of TDS is applicable.
- If you have not filed the TDS within one year of the due date, then Penality is applicable.
Late Filing Fee
With effect from 1st July 2012, as per Section 234E, if you haven’t filed the TDS Return Online before the due date you shall be liable to pay a penalty. The penalty is of Rs. 200 per day till the time the default continues. However, the total penalty that is calculated at the rate of Rs. 200 per day should not exceed the total amount of tax deducted.
Interest on Late Payment of TDS
In case TDS is not deducted:
Interest at the rate of 1% for non-deduction of TDS will be applicable from the date on which the tax is required to be deducted to the date of actual deduction
In case TDS is deducted but not paid:
For late deposit of TDS after deduction, you have to pay interest @ 1.5% under Section 201(1A). Interest should be paid at the rate of 1.5% per month from the date at which TDS is deducted to the actual date of deposit of TDS. 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).
TDS amount = Rs. 5000
Date of deduction = 13th January.
If you have paid TDS on 17th May, then the interest you owe = Rs. 5000 x 1.5% per month x 5 months = Rs. 375.
Income Tax Act, 1961 has not defined the “Month”. So, it should be considered as a period of 30 days because it has been mentioned in a number of High Court cases to take a month as a period of 30 days and not as English Calender Month.
This amount (interest on late payment of TDS) is to be paid from the date at which TDS (Tax Deducted at Source) was deducted and not from the date from which TDS was due.
For example, if the due date of TDS payment is 7th May and you have deducted TDS on 19th April. Then you need to pay Interest on Late Payment of TDS starting from 19th April and not from 7th May.
Also, let us take the case in which you deposit tax 1 month after the due date. For example, if the due date of TDS payment is 7th September and you have deducted TDS on 1st August and deposited on 8th September i.e., one day after the due date (7th September), then interest is applicable from 1st Aug to 8th Sep (i.e. for 2 months).
Therefore, you have to pay interest of 1.5% per month x 2 months = 3%.
Penalty for not filing TDS within 1 year
If you have failed to file the TDS Return within 1 year from the due date of filing of a return or if you have delivered any incorrect information, then also you shall be liable to pay a penalty. The penalty will not be less than Rs. 10,000 and not more than Rs. 1,00,000.