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.
Forms for Filing TDS Returns
| Form No. | Description |
| Form 24Q | Quarterly TDS statement for tax deducted on salary payments. |
| Form 27Q | Quarterly TDS statement for tax deducted while making payment, other than salary, to non-resident (not being a company), and foreign company |
| Form 26Q | Quarterly TDS statement for other cases like TDS deducted on professional fees, interest payments, etc. |
However, if tax is deducted at source under Sections 1194-IA, 194-IB and 194M the deductor shall furnish a challan-cum-statement in Form 26QB, Form 26QC and Form 26QD, respectively. The deductor should provide the challan-cum-statement within 30 days from the end of the month in which TDS is deducted. As an exception, no return is required separately in such cases.
TDS Payment Due Dates
The due dates for depositing the TDS and TDS return filing for the financial year 2024-25 for the deductors are as follows-
Quarter Ending (for the year 2024) | Month of Deduction (for the year 2024) | Due Dates for Depositing TDS (FY 2024-25) | TDS Return Due Date (FY 2024-25) |
June 30th, 2024 | April 2024 | 7th May, 2024 | July 31st, 2024 |
May 2024 | 7th June, 2024 | ||
June 2024 | 7th July, 2024 | ||
September 30th, 2024 | July 2024 | 7th August, 2024 | October 31st, 2024 |
August 2024 | 7th September, 2024 | ||
September 2024 | 7th October, 2024 | ||
December 31st, 2024 | October 2024 | 7th November, 2024 | January 31st, 2025 |
November 2024 | 7th December, 2024 | ||
December 2024 | 7th January, 2024 | ||
March 31st, 2025 | January 2025 | 7th February, 2025 | May 31st, 2025 |
|
| ||
| 7th April, 2025 (for tax deducted by govt. office) | ||
| 30th April, 2025 (for other deductors) |
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 various government enforcement measures.
Penalty for Late Filing of TDS/TCS Returns
Late Filing Fee (Sec 234E)
Under Section 234E, a fee of Rs. 200 for every day would be charged for late furnishing of TDS/TCS statements from the due date of furnishing of the statements till the date of furnishing of the statements. However, the total amount of the fee cannot exceed the total amount of tax deductible/tax collectible and such fee has to be paid before delivering the TDS/TCS statements.
For example: Say that you have deducted TDS of Rs 5000 on 13th May 2024 and you file the return for Q1 on 17th November 2024 instead of the due date 31st July 2024.
The delay is 109 days counting from 1st August 2024 to 17th November 2024.
Then the calculation comes out to Rs 200 x 109 days = Rs 21,800, but since this amount is greater than TDS Rs. 5,000, you will have to pay only Rs. 5,000 as the late filing fee.
In addition to this, you also have to pay interest for delay in deposit of TDS which is covered in the next section.
Penalty (Sec 271H)
The Assessing Officer may direct a person who fails to file the statement of TDS/TCS within the due date to pay a minimum penalty of Rs 10,000 which may be extended to Rs 1,00,000. The penalty under this section is in addition to the late filing fee u/s 234E. This section will also cover the cases of incorrect filing of TDS returns.
No penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if the following conditions are satisfied:
- The tax deducted/collected at source is paid to the credit of the Government.
- Late filing fees and interest (if any) is paid to the credit of the Government.
- The TDS/TCS return is filed before the expiry of a period of one year from the due date specified on this behalf.
Interest on Late Deposit of TDS
| Section | Nature of Default | Interest subject to TDS/TCS amount | Period for which interest is to be paid |
| 201(1A)(i) | TDS not deducted (fully/partly) | 1% per month | From the date on which tax is deductible to the date on which tax is actually deducted. |
| 201(1A)(ii) | TDS not deposited to the government after deduction (fully or partly) | 1.5% per month | From the date of tax deduction to the date of deposit |
Note: The above interest should be paid before filing of TDS return.
Under Section 201(1A), in case of late deposit of TDS after deduction, you have to pay interest. Interest is calculated at the rate of 1.5% per month from the date on which TDS was deducted to the actual date of deposit.
Note: The interest is to be calculated on a monthly basis and not on the number of days i.e. part of a month is considered as a full month.
- For example, the date of deduction of TDS of Rs 5,000 is 13th January 2024. If you pay TDS on 17th May 2024, then the interest you owe is from 13th January 2024, i.e. is Rs 5000 x 1.5% p.m. x 5 months (Jan-May)= Rs 375.
- “Month” has not been defined in the Income Tax Act, 1961. However, in a number of High Court cases, it has been mentioned that it should be considered as a period of 30 days and not as an English calendar month.
- The interest is calculated from the date on which TDS was deducted and not from the date TDS was due.
- Also, consider the case in which you deposit tax one month after the due date. Say you have deducted TDS on 21st February 2024. Then the due date is 7th March 2024. If you deposit tax on 8th March 2024 (i.e. one day after the due date). Then interest is applicable from 21st February 2024 to 8th March 2024 i.e. for a period of 2 months. You now have to pay interest of 1.5% p.m. x 2 months = 3% on the TDS amount.
How to Make TDS Payment Online
- 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 is 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.”
FAQs
What if TDS is not filed within the due date?
On late payment of TDS, a penalty will be levied under section Section 234E. Rs 200 will be charged every day till TDS is paid. Note, the penalty sum cannot exceed the TDS amount.
Is TDS refundable?
Yes, if you have paid TDS in excess, you can get a TDS refund.
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