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The Ultimate Guide To TDS Payment Due Dates

Tax Deducted at Source

Introduction To TDS Payment Due Dates

Tax Deducted at Source (TDS), is a procedure for collection of tax by Government at the time of the transaction itself. Either, the deduction of taxable amount happens while paying the amount or, from the payee’s account. But, the deduction from payee’s account shall take place only when the amount is credited.

When any payment of salary or life insurance policy takes place, the deduction of tax is at the time of payment. The one who is deducting the amount is ‘deductor’, and he deposits the amount in IT (Income Tax) Department. This is a beneficial method to reduce tax evasion. Tax deduction varies from 1% to 10%.

Payment of TDS: Due Dates

The due dates for payment of TDS are different, depending on the offices:

Government Office

  • In government offices, the due date of TDS deposit is the same day, when the person pays such amount without a challan.
  • In the event a person pays such amount with challan, then, the due date becomes 7th of the next month.

Other Office

  • If the payment of the amount is in the current month, then the TDS deposit due date shall be the next month’s 07th day.
  • If the payment of the amount is in March specifically, then, the due date shall be 30th April.

TDS Return

Deductor must file TDS Returns. Deductor is generally the employer. The submission of TDS return is usually every quarter to the IT department. The deductor must submit such statements on time with the necessary documents. Certain information and documents required for filing the returns are:

  • Deductor’s and deductee’s PAN;
  • Tax amount;
  • Challan Information; and,
  • Any other prescribed by the authority.

Eligibility

Deductor shall have a valid TAN for being eligible to file TDS return. TAN is the Tax Collection and Deduction Account Number. The IT Department prescribes a time in which Deductor shall deposit the TDS for the deduction made under the TDS head. The deposit of payment shall be for the following types of Payment:

  • Salary.
  • National Saving Scheme.
  • Insurance Commission.

The deposit shall also be for following types of income:

  • Income on Securities.
  • Income from lottery, puzzles and other similar means.

Due Dates for TDS Return Filing

The filing TDS Returns is according to the due dates of the respective Quarter. The following is the payment dates according to the quarters:

  • The first quarter begins from 01st April to 31st June, and the filing of TDS return has a due date of 31st August.
  • The second quarter begins from 01st July to 31st September, and the filing of TDS return has a due date of 31st October.
  • The third quarter begins from 01st October to 31st December, and the filing of TDS return has a due date of 31st January.
  • Fourth-quarter begins from 01st January to 31st March, and the filing of TDS return has a due date of 31st May.

Forms for filing TDS Returns

The filing TDS returns depend upon the deduction, and the deductions depend upon the purpose. For different purposes, there are different forms:

  • For Salary purposes, Form 24Q is the for filing TDS returns.
  • Form 27Q is applicable in case the deductee is not a resident or a foreign company.
  • In case the TDS is for payment for the transfer of immovable property, Form 26QB comes in play.
  • In any other situation Form, 26Q is applicable.

For controlling the quarterly statements of the company, Form 27A is available. Since for different purposes, a different form is applicable, and Form 27A is used to maintain the returns in the company by a signed verification. A quarterly statement, along with Form 27A, is filed together by the deductors. This is to match the totals of TDS return with totals of the amount paid and TDS.

TDS Return Submission

For filing TDS return through electronic means, the assessee is liable from whose income there is a deduction of TDS. It is mandatory to file TDS return according to the quarter and its respective due date. In the event assessee is unable to file the TDS return within the due date, the assessee will be liable to pay the penalty. Per Section 243E of the Income Tax Act, 1961 penalty of INR 200 per day is applicable in case the default continues. However, in any case, the penalty does not exceed the TDS amount.

The assessees who must file TDS return quarterly are :

  • People who have auditing of their accounts under section 44AB of the Income Tax Act, 1961.
  • Any government servant or person having an office under the government.
  • Corporations.

TDS Return, if not filed

In any event, if the TDS Return is not filed in a year from the due date or if there is an error pertaining to the filing of TDS return, a penalty can be levied. The minimum cost of the penalty is INR 10,000 and can go up to INR 1,00,000.

Revision of TDS Return

In the event there is an error in the TDS Return filing, the tax amount will not reflect in Form 16, 16A or 26AS depending on challan details. To ensure the credited amount of tax with the government is reflected in the respective form, revised TDS return has to be filed. There are various types of correction, depending on which the revision of TDS return will be filed.

Conclusion

It is quite natural for any person to file TDS payment. But, the main elements playing a pivotal role in this are the due dates. Even, if one fails to comply with the due date, then also the return can be filed. However, there will be a penalty on the return filing at a later stage. The duty of filing TDS returns on time rests on the deuctor, who generally is the employer. Further, if the delay in filing of TDS return is intentional and the delay is beyond a year from the due date then, a penalty may be imposed for the delay which may extend up to INR 1,00,000.

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by Aniruddha Malik

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