Basically, TDS is deducted by the payer at the time of making a payment to the seller and the deducted amount is then deposited with the government within the specified due dates. And then can claim it as a credit while filing their income tax return.
Similarly, like income tax has a due date to file IT returns, there is a due date to file TDS returns as well, and missing that can levy some penalties too.
Due dates for depositing TDS:
- The due date for TDS deducted in a month should be deposited on or before the 7th day of the following month. For example, TDS deducted in the month of April should be deposited on or before the 7th of May. But for the month of March, the due date is 30th April.
- In the case of TDS on the sale of property (as per section 194IA), the TDS amount should be deposited within 30 days from the end of the month in which TDS was deducted and shall be submitted with a challan-cum-statement in Form 26QB.
The due dates for filing a TDS return depend on the type of TDS return being filed.
The due dates for TDS return for salaries (Form 24Q), non-salary payments (Form 26Q), on payments to NRI (Form 27Q) is as follows,
| Quarter | Due date for filing TDS return |
|---|---|
| Q1 (April, May June) | On or before 31st July |
| Q2 (July, August, September) | On or before 31st October |
| Q3 (October, November, December) | On or before 31st January |
| Q4 (January, February, March) | On or before 31st May |
Like Form 26QB, Form 26QC for TDS on the rent of the property is needed to file TDS return within 30 days from the end of the month in which TDS is deducted.
Penalty for late payment of TDS
If you fail to file your TDS return on or before the due date, you may be liable to pay a late filing fee of ₹200 per day until the return is filed, subject to a maximum amount equal to the total amount of TDS.
Additionally, interest will be charged under section 201(1A) at a rate of 1% per month or part of the month on the amount of TDS for the period from the date on which the TDS was deducted to the date on which the return is filed.
Therefore, it is advisable to file your TDS returns on time to avoid any penalties or interest charges.