TDS Returns – Due Dates And Late Filing Fees

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  • 11 Mar 2023

“Punctuality is the thief of time.” - Oscar Wilde

There are many benefits of being punctual. One of the best benefits is removing threats of not being punctual. Let it be life or business one should be punctual. TDS (Tax deduction at source) and TCS (Tax collected at source) should be filed with the government as soon as possible.

With that said, let’s make it clear: It is imperative to e-file TDS returns for every assessment year. Simply put, e-filing TDS returns are all about electronically filing TDS returns in Form No. 24, 26, or 27 in accordance with the data system prescribed by the IT department. TDS Return can be filed through you can file through any TIN Facilitation Centers. Here is some important information you need to know about TDS and TCS returns.

Form No. Description
Form 24QQuarterly TDS statement for tax deducted on salary payments.
Form 27QQuarterly TDS statement for tax deducted while making payment, other than salary, to non-resident (not being a company), and foreign company.
Form 26QQuarterly TDS statement for other cases like TDS deducted on professional fees, interest payments, etc.

However, if tax is deducted at source under Sections 194-IA and 194-IB, the deductor shall furnish a challan-cum-statement in Form 26QB and Form 26QC, 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.

Quarter Period Last Date of Filing
1st Quarter1st April to 30th June31st July 2022
2nd Quarter1st July to 30th September31st October 2022
3rd Quarter1st October to 31st December31st Jan 2023
4th Quarter1st January to 31st March31st May 2023
Quarter Period Last Date of Filing
1st Quarter1st April to 30th June15th July 2022
2nd Quarter1st July to 30th September15th October 2022
3rd Quarter1st October to 31st December15th Jan 2023
4th Quarter1st January to 31st March15th May 2023

*All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government without challan (Treasury Challan) should be deposited on the same day of deduction. Only tax deducted by the government office during the month of March 2023 should be deposited by 7th April 2023.

Late Filing Fee (Sec 234E)

Under Section 234E, the person who is required to deduct/collect TDS/TCS will have to pay a fine of Rs 200 (two hundred) per day until the TDS return is filed. The deductor of TDS shall be liable to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS.

In addition to this, you also have to pay interest for the delay in the 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) are 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.

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 monthFrom 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 monthFrom 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 a 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, that this 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.

Penalty For Late Payment Or Non-Payment Of TCS

If the person fails to collect tax at source (TCS) or collects tax (TCS) but fails to deposit to the government within the prescribed due dates, then he is required to pay interest at the rate of 1% per month or part thereof on the TCS amount. The tax collector is liable to pay interest from the date on which such tax was collectible to the date the tax was actually paid.

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