Interest And Penalty For TDS Default

Tax Deducted at Source, commonly referred to as TDS was introduced with the target of collecting tax from the very source of income. in keeping with the concept of TDS, the deductor, is understood because the one who is vulnerable to make a payment of a specific nature to somebody else, referred to as a deductee, should deduct the tax at source and remit this amount within the account of the Central Government.

Interest And Penalty For TDS Default

The credit of the quantity so deducted, calculated on the idea of Form 26AS or TDS certificate issued by the deductor, shall be to the deductee, from whose revenue enhancement has been deducted at source. The relevant provision of the Act or the primary Schedule to the Finance Act enlists the rates specified for the deduction. The tax rates specified under the Double Taxation Avoidance Agreements shall even be considered just in the case of non-resident persons.

TDS Interest For Late Payment

There are two kinds of TDS interest provisions:

TDS Interest for late deduction:

The rate of interest for late deduction of TDS is nineteen per month. This rate of interest shall be levied from the date on which the tax was deductible to the date of deduction. The Section for default for TDS Interest for delayed deduction is 201A. only after the paying of interest, the TDS return filing is feasible.

TDS Interest for late payment:

The interest payment for late deposit of TDS after deduction is at the speed of 1.5% per month under Section 201(1A). This interest is calculated on a monthly basis and not on the number of days. And this can be why a part of a month is taken into account as a full month. The fee of this interest amount is evaluated to the date on which TDS is due i.e. from the date on which the TDS was deducted.

There is a provision to pay the interest on late TDS before paying the TDS return or after the demand for the identical has been raised by TRACES. there’s also a provision to regulate such an interest from the quantity remaining in any TDS Challan under any section. This interest paid on delay in deposit of TDS isn’t considered as an expenditure under the tax Act.

E-FILE Your Revenue Enhancement Return

As provided under Section 201 of the Finance Act, the payer who doesn’t deduct the entire or parts of the tax on the payment forwarded to the resident payee isn’t considered to be an assessee-in-default for the tariff which he hasn’t deducted, if the below-lying conditions are satisfied:

The citizen recipient has given his return for his income under section 139.

The above income has been taken into consideration by the recipient of the resident in its return of income.

The taxes due on the income are paid by the resident recipient on the income declared in such return of income.

A certificate to the current effect has been furnished by the payee of the resident to the present effect from an account within the Form no. 26A

TDS Due Dates For the year 2019-20

1st Quarter is from 1st April to 30th June 31st July 2019

2nd Quarter is from 1st July to 30th September 31st October 2019

3rd Quarter us from 1st October to 31st December 31st January 2020

4th Quarter is from 1st January to 31st March 31st May 2020

TDS Payment day of the month for the presidency and Non-Government

The maturity for deposit of TDS for Non-Government deductors:

It is the 7th of the following month, apart from the month of March. For March, the date is 30th April.

The maturity for deposit of TDS for presidency deductors:

7th of the subsequent month if paid through Challan. and therefore the same day on which the TDS is deducted if paid through book entry.

TDS Payment date For Public Holidays

If the TDS payment date falls on Sunday or a public holiday, the TDS will be paid on the following working day.

Penalty Levied For BriefOr Late Payment Of TDS 

The penalty to the extent of an amount that wasn’t deducted or remitted may be imposed on the payer. The payer is punishable with rigorous imprisonment for a term not but three months and increasing up to seven years. Also, additionally with a fine just in case, the payer doesn’t pay the tax deducted to the account of the Central Government. this could be taken under the provisions of Chapter XVII-B of Section 276B.

Interest And Penalty For TDS Default

Click the link to control the TDS penalty calculator on the Tax Dept. official website.

Consequences  these days FIling

1st July 2012 onwards, a delay in providing the eTDS statement will end during a compulsory fee of Rs. 200 days till the return is filed. However, during this case, the entire fee doesn’t exceed the entire amount of TDS deducted for the given quarter. The late filing fee should be paid before the filing of such an eTDS statement. If there’s a failure of delaying the filing of the TDS statement for over a year, or the small print like PAN, Challan, and TDS amount, furnished within the statement are incorrect, there’ll be a penalty starting from Rs. 10,000 to one lakh, as determined by the Assessing Officer.