Article explains about Tax Deductor, Person liable to furnish TDS statement, Form for filing TDS statements, Due date for filing of TDS statements, Due due dates for filing quarterly TDS statements, Furnishing of TDS statement, Due date for deposit of TDS to the credit of Central Government and Mode of payment of TDS.
Brief introduction to Tax Deductor
For quick and efficient collection of taxes, the Income-tax Act has incorporated a system of deduction of tax at the point of generation of income. This system is called “Tax Deducted at Source” commonly known as TDS. Under this system, tax is deducted at the point of origination of income. Tax is deducted by the payer and the same is directly remitted to the Government by the payer on behalf of the payee.
The provisions of tax deducted at source presently apply to several payments like salary, interest, commission, brokerage, professional fees, royalty, etc.
Person liable to furnish TDS statement
Every person responsible for deduction of tax shall furnish quarterly statements in respect thereof.
Form for filing TDS statements
Quarterly TDS statements shall be furnished in following forms:-
1) Form 24Q – Statement of deduction of tax from salary under section 192.
2) Form 27Q – Statement of deduction of tax under section 193 to 196D in respect of the deductee who is a non-resident (not being a company) or a foreign company or resident but not ordinarily resident.
3) Form 26Q – Statement of deduction of tax under Section 193 to 196D in any other case.
However, in case tax is deducted under section 194-IA and 194-IB, the deductor shall furnish a challan-cum-statement in Form 26QB and Form 26QC respectively within a period of 30 days from the end of the month in which the deduction is made. In this case, no statement shall be filed separately.
Due date for filing of TDS statements
The due dates for filing quarterly TDS statements are as follows:
- Quarter ending of the financial year If deductor is an office of government or non-government deductor
| Quarter | Period | Due Date of Filing |
|---|---|---|
| 1st Quarter | 1st April to 30th June | 31st July |
| 2nd Quarter | 1st July to 30th September | 31st Oct |
| 3rd Quarter | 1st October to 31st December | 31st Jan |
| 4th Quarter | 1st January to 31st March | 31st May |
Furnishing of TDS statement
The quarterly TDS statement shall be furnished in any of the following mode:
a) Furnishing the statement electronically under digital signature; or
b) Furnishing the statement physically through TIN facilitation centre along with the verification of the statement in Form 27A
Due date for deposit of TDS to the credit of Central Government:
1) In case deductor is an office of the Government
a) Where tax is paid without production of an income-tax challan On the same day when tax is deducted
b) Where tax is paid accompanied by an income-tax challan. On or before 7 days from the end of the month in which the deduction is made or income-tax is due under Section 192(1A)
2) In case of any other deductor
a) For the month of March – On or before 30th day of April
b) In case of any other month – On or before 7 days from the end of the month in which the deduction is made or income-tax is due under sub-section (1A) of section 192
Any sum deducted under section 194-IA or 194-IB shall be paid to the credit of the Central Government within a period of 30 days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB or Form 26QC respectively.
Mode of payment of TDS:
Taxes deducted at source shall be deposited to the credit of the Central Government in following modes:
1) E-Payment:
E-Payment is mandatory for :
a) All the corporate assesses.
b) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable.
2) Physical Mode:
By furnishing the Challan No. 281 in the authorized bank branch
Note:
When tax is deducted/collected by government office, it can remit the amount to the Central Government without production of an Income-tax challan and by making only book adjustment. In such a case, it has to furnish Form No. 24G to NSDL with in prescribed time-limit.
Consequences if default is made in payment of TDS
Fees & Penalty for late / Non filing of TDS Return
(Republished with Amendments by Team Taxguru)
Please provide the PF TDS deduction &remittance and quarterly returns detail,mainly on Challan part I.e what code to be use for remittance, which form we need to use for quarterly return? (24q,26q,27q)