TDS Return and Payment Due Date for FY 2024-25
Updated: Aug 2
Tax Deducted at Source (TDS) is one of the most important compliance requirements in businesses and individuals across India. Failure to pay or file TDS on time invites many problems in the smooth financial functioning of organizations and individuals, and sometimes results in legal complications. Through this post, we have mentioned all the information related to the TDS payment due dates, late filing penalties, and more in relation to FY 2024-25.
Table of content
Forms for Filing TDS Returns
Different forms are used for filing TDS returns based on the type of transaction. Following are the types of forms for filing TDS returns:
Form 24Q: Quarterly statement of TDS on salaries.
Form 27Q: Quarterly statement of tax deducted for any interest, dividend, or any other sum payable to non-residents (not being a company) and foreign companies.
Form 26Q: Quarterly statement of TDS in other cases like TDS deducted on professional fees, interest payments, etc.
Challan-cum-statement forms: Statement-cum-challans in Form 26QB, Form 26QC and Form 26QD are to be used for Sections 194-IA, 194-IB and 194M respectively. These statements are to be furnished within 30 days from the end of the month in which TDS is deducted.
TDS Payment Due Dates
The due dates for depositing TDS and filing TDS returns for FY 2024-25 are as follows:
In the case of government deductors, TDS through book entry (Treasury Challan) should be deposited on the same date on which TDS was deducted. In case of March, it shall be by 7th April.
Penalty for Late Filing of TDS/TCS Returns
Penalty for late filing of TDS or TCS returns are as below:
Late Filing Fee (Section 234E)
Section 234E charges a fee of INR200 per day for late furnishing of TDS/TCS statements from the due date until the statements are filed. The total fee is not to be more than the total amount of tax deductible/tax collectible. This fee shall be paid prior to delivering the TDS/TCS statements.
Example: If you have deducted TDS of INR 5,000 on 13th May 2024 and filed the return for Q1 on 17th November 2024 instead of the due date 31st July 2024. Delay is 109 days. Now, calculate, INR 200 x 109 days = INR 21,800. Since this is more than TDS INR5,000, you pay only INR5,000.
Penalty (Section 271H)
The Assessing Officer may direct a person who fails to file the TDS/TCS statement within the due date to pay a minimum penalty of INR 10,000, which may extend to INR1,00,000. Such penalty is in addition to the late filing fee under Section 234E. It shall also cover the cases of incorrect filing of TDS returns.
No penalty under Section 271H will be levied for delayed filing if:
The tax deducted/collected at source is paid to the government.
Late filing fees and interest, if any, are paid.
The TDS/TCS return shall be filed within one year from the due date.
Interest on Late Deposit of TDS
Section 201(1A)(i): 1% per month if TDS is not deducted (fully or partly) from the date on which tax is deductible up to the date on which it is deducted.
Section 201(1A)(ii): 1.5% per month if the TDS, after deduction, is not deposited with the Central Government up to the date of deposit.
Example: If TDS of INR 5,000 was deducted on 13th January 2024 and paid on 17th May 2024, interest shall be calculated from 13th January 2024, ., INR 5,000 x 1.5% p.m. x 5 months (Jan-May) = INR 375.
Note: Interest is calculated on a monthly basis, not on the number of days.
Prosecution (Section 276B)
Failure to pay TDS to the credit of the Central Government can result in rigorous imprisonment for a period extending from three months up to seven years apart from the fine.
Penalty for Late Payment or Non-Payment of TCS
According to the Ordinance 2020, the department waived all penalty provisions from 20th March 2020 to 30th June 2020. In normal times, the penalty may be by way of a quantum amount not deducted/collected or remitted.
Penalty Provisions due to COVID-19 Lockdown 2020
Failure to deposit the TCS within the prescribed due dates can result in rigorous imprisonment for a term between three months and seven years, besides a fine.
FAQ
Q1. Is TDS paid monthly?
Yes, TDS deducted in any month must be paid on or before the 7th of the next month. However, TDS deducted in March can be deposited until 30th April.
Q2. How is TDS calculated on salary?
TDS on salary is calculated according to the income tax slab applicable to the employee after adjusting all eligible deductions and exemptions.
Q3. Can I file TDS return after the due date?
But a penalty under Section 234E of INR 200 per day has to be paid. The deductor is liable to pay this penalty for every day during the continuance of the failure. Further, a penalty under Section 271H may be levied, which shall not be less than INR 10,000 but may extend to INR 1,00,000.
Q4. What are Form 24, 26, 27, and 27E?
These forms are prescribed formats by the IT department for TDS/TCS returns:
Form 24: Statement of TDS details on salary payments
Form 26: Statement of TDS details on other than salary payments [Domestic]
Form 27: Statement of TDS details on other than salary payments [NRI/Foreign]
Form 27E: Statement for TCS details
Q5. What is TDS in simple words?
TDS is, in simple words, income tax reduced from money paid at the time of making specified payments like rent, commission, professional fees, salary, interest, and so on.
Q6. Who is liable to deduct TDS?
The deductor shall deduct TDS before making the payment and deposit it with the government, irrespective of the mode of payment.
Q7. Is TDS on salary necessary to be deducted monthly?
Yes, as per Section 192 of the Income Tax Act, every employer paying salaried income shall deduct TDS if the income is in excess of the basic exemption limit.
Q8. Is TDS calculated on gross salary or CTC?
For calculating the TDS, the employer first estimates the taxable net salary and then deducts the TDS from that amount after considering the exemptions and tax-free allowance from the gross salary.
Q9. Is TDS calculated on the amount inclusive of GST?
No, TDS is calculated on the amount exclusive of GST.
Q10. What is the late fee for filing the TDS return after the due date?
The late fee is INR 200 per day until the default continues, but it cannot exceed the amount of TDS deducted.
Q11. What is the interest liability for failure to deduct tax?
The interest liability is 1% per month or part of the month on the amount of tax from the date on which tax was deductible to the date on which it was actually deducted.
Q12. What is the interest liability for failure to pay the tax after deduction?
Interest liability would be 1.5% per month or part of the month on the amount of tax from the date of deduction to the date of payment.
Related Posts
See AllIndia is all set to take its tax identification system to the next level with the introduction of PAN 2.0. This ambitious project,...
Bình luận