Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where the individual is responsible for making listed payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment. Payment of TDS each month and filing of TDS Return are 2 different processes and TDS Return due date are also different.

TDS Return due date

Month of Deduction Quarter ending TDS Return due date through Challan Due Date for filing of Return FY 2017-18 for All Deductors
For Govt. Deductor For Other Deductor
April 30th June 7th May 31st July
May 7th June
June 7th July
July 30th September 7th August 31st October
August 7th September
September 7th October
October 31st December 7th November 31st Jan
November 7th December
December 7th Jan
January 31st March 7th Feb 31st May
February 7th March
March 7th April 30th April

Late Filing Fee

Under Section 234E, an individual has to pay a fine of Rs 200 per day as long as the return is not filed. Though, the total penalty computed should not exceed the total amount of tax deducted.

For example: let’s assume Ajay payable TDS amount is Rs 6000 on 13th May and he paid it on 17th November (i.e. 189 days, counting 17th November).

Then according to the rule of Income taX, if we calculate the total amount then it is  Rs 200 x 189 days = Rs 37800, but since this is greater than Rs 6000 then Ajay will have to pay only Rs 6000 as the late filing fee. In addition with this, you also have to pay interest which is covered in the next section.  

Interest

Section Nature of Default Interest subject to TDS/TCS amount Period for which interest is to be paid
201A Non-deduction of tax at source, either in whole or in part 1% per month From the date on which tax deductible to the date on which tax is actually deducted
After deduction of tax, non-payment of tax either in whole or in part 1.5% per month From the date of Non-deduction the date of payment


For example: Rishi payable TDS amount is Rs 8000 and the due date is 13th January. Rishi pay TDS on 17th May and the total interest Rishi  be obliged is Rs 8000 x 1.5% p.m. x 5 months = Rs 600

This interest amount is to be paid from the date at which TDS was deducted, not from the date from which TDS was due.

For example: let the TDS Return due date is 7th May and you have deducted TDS on 19th April and you have not deposited TDS by 7th May and you have to pay interest amount starting from 19th April and not 7th May.

Penalty 

Section  234E-  levy of fees

  • Under this Section 234E, if an individual forgets to file or delay to file your TDS return then he has to pay a fine of Rs 200 per day as long as the return is not filed.  Though, the total penalty computed should not exceed the total amount of tax deducted.

Section 271H– Penalty

Deductor has to pay a penalty of a sum which is not less than Rs. 10,000 up to   Rs.1,00,000.

  • Submission of wrong details like PAN, Amount of tax, Payment of Challan etc.
  • Period of non- filing exceeds one-year time limit to file TDS statement of a deductor.

In case you are confused about TDS Return Filing as a deductor, feel free to consult the experts at LegalRaasta. You can get comprehensive assistance with our TDS Return Filing Software which supports TDS on Salary payments Form24Q, Rent, Interest, Commission and other Non-salary transactions (Form 26Q), NRI (Form 27Q) and TCS Form27EQ.