Every taxpayer whose TDS has been deducted is required to complete a TDS return. These forms must be filed at specific times, and the information that must be supplied to the income tax authorities includes the TAN number (Tax Deduction and Collection Account Number), the amount deducted, the Permanent Account Number (PAN), the TDS payment, the kind of payment, and so on.

There are late filing costs for late submission of TDS returns, therefore it is critical to remember the due dates as well as the relevant documentation necessary.

TDS Deducting Deposit Deadlines

The tax deductor shall deposit the TDS (tax deducted at source) to the government within the time period specified in Section 200 of the Income Tax Act of 1961. Current income tax laws require the tax deductor to deposit the tax with the government by the seventh day of the following month. The government and other deductors have varied deadlines for taxes deducted in March. The government has until April 7 to deposit tax deducted. The tax must be deposited by April 30 for all other deductors. 

TDS Return Filing Deadline FY 2022-2023

TCS Returns Filing Deadline for FY 2022-2023

Penalties for late filing of TDS/TCS returns

The following penalties shall be applicable if TDS is not paid on time or TDS returns are filed incorrectly:

• Late filing fees
• Penalty
• Interest
  
  

Late Filing Fees

If you do not file your TDS returns by the due date, you will be charged a late filing fee of Rs.200 per day. The cost will be levied for each day beyond the due date until your return is filed. The maximum fees you will have to pay, however, will be restricted to the TDS amount.

Penalty for TDS Return

If TDS returns are filed beyond the due date or there are errors in the return forms, the following penalties will apply:

• Penalty under Section 234E: Under this section of the Income Tax Act, the deductor must be fined Rs. 200 each day till TDS is paid; however, the penalty amount may not be greater than the TDS amount.
• Penalty under Section 271H: If false information, such as an incorrect PAN or tax amount, is submitted, a penalty of between Rs. 10,000 and Rs. 1 lakh will be assessed.
  
  

A penalty will not be imposed under Section 271H of the Income Tax Act if TDS/TCS returns are not filed by the due date if the following criteria are met:

• The TDS/TCS is paid to the government.
• One year after the due date, the TDS/TCS returnis submitted.
• Any applicable interest and late filing costs have been paid to the government's credit.

Interest Rate for TDS Payment

According to Section 201(1A) of the Income Tax Act of 1961, if tax is not deducted at source, either partially or completely, an interest rate of 1% per month would be applied from the day tax was meant to be deducted until the date it is actually deducted. If tax has been deducted but not paid in full or in part, an interest rate of 1.5% per month will be applied from the day tax was deducted until the date it was paid.

TDS Return Forms

The TDS return forms and their purposes are as follows:

Types of Challan Statuses in a TDS/TCS Statement

The following are the different types of statuses in the TDS/TCS statement:

• Booked
• Match Pending
• Match Failed (Challan)
• Match Failed (Transfer Voucher)
• Pending Booking
  
  

Frequently Asked Questions

1. Will there be an upload fee for correcting e-TDS/TCS returns?

Yes, an upload charge is required for e-TDS/TCS return rectification. The charge will vary depending on the number of records.

2. Who is the e-filing Administrator?

The CBDT has nominated the Director General of Income Tax (Systems) as the e-filing administrator.

3. What is the due date for filing TDS returns?

The final day of each month is the deadline for TDS deposition. 

4. Is the TDS return due date extended?

The CBDT has extended the deadline for filing the TDS Return/ Statement in Revised/ Updated Form 26Q, applicable to non-salary deductions of tax at source, from 31 October 2022 to 30 November 2022 for the second quarter (Q2) of Fiscal Year (FY) 2022-23 (July-September).

5. What exactly is Form 26Q?

Form 26Q, Statement for TDS on All Payments Except Salaries. Form 26Q is required for TDS on all received payments other than salary. It is relevant for TDS under Income Tax Act of 1961 sections 200(3), 193, and 194 and must be submitted by the deductor each quarter.

6. What happens if TDS is not filled?

Section 234E states that if a person fails to file the TDS/TCS return by the due date indicated, he must pay a fine of Rs.200 for each day that the failure persists. The amount of late fees cannot exceed the amount of TDS/TCS. 

7. Who is liable for TDS?

A person (deductor) who owes a specified sum to another person (deductee) must deduct and remit tax to the Central Government.

Also read: Guide on how to file an ITR in India

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