Due Dates for E-Filing of TDS & TCS Returns for FY 2023-24

Under the Income-tax Act, if an individual makes a payment to another party, it is mandatory to deduct TDS (Tax Deducted at Source) at a specified rate and remit it to the government. Conversely, for TCS (Tax Collection at Source), the recipient of the payment is responsible for collecting tax from the payer and subsequently submitting it to the government.

For the first quarter of the fiscal year 2023–24, the deadline for filing TDS/TCS statements in Form 26Q, 27Q, and 27EQ has been extended until September 30th, 2023, as detailed in the provided circular.

Outlined below are the current deadlines for submitting TDS/TCS returns based on the most recent government update.

The government aims to enhance liquidity by injecting Rs 50,000 crores through a reduction in TDS rates for specific non-salaried payments to residents. Additionally, there will be a 25% decrease in the existing rates of Tax Collection at Source for designated receipts.

Last Dates of FY 2023-24 for TDS Return Filing along with the Last Dates of FY 2023-24 for TCS Return Filing.

TDS Due Dates of FY 2023-24 for Return Filing

 TCS Statement Due Dates for FY 2023-24

 TDS & TCS Payment Deposit Due Dates for Govt & Non-government

• The due date for depositing TCS is the 7th of next month.
• Due dates for depositing TDS are as under:
  • For non-government Deductors- the 7th of next month (except for the month of March where the due date is the 30th of April)
  • For Government Deductors-

i) If paid through challan- 7th of next month

ii) If paid through book entry- Same day i.e. the day on which TDS was deducted.

TDS Payment Due Date for Sunday or Public Holiday

Tax deduction at source (TDS) occurs at the time of payment to the recipient, with the deducted tax being directly remitted by the payer to the government. TDS filing is obligatory for anyone involved in payment transactions, necessitating various compliance measures mandated by the government. The imminent due date for filing TDS returns, as provided by the government, is approaching. Comprehensive details about the TDS return filing due date are essential for accurate information.

Recent information indicates that the upcoming TDS return due date coincides with a Sunday, a public holiday. Consequently, it is permissible to make the TDS payment on the subsequent working day.

Due Date of 15G/15H Form

The deadline for quarterly submission of 15G/15H declarations received by the payer starting from April 1, 2017, and the procedure for handling 15G/15H received by the payer between October 1, 2015, and March 31, 2016, has been outlined in Notification No. 09/2016 dated June 9, 2016, under F.No.DGIT(S)/CPC(TDS)/DCIT/15GH/2016-17/4539.

Penalties on TDS/TCS Return Filing After Due Date

TDS serves the purpose of ensuring timely tax payment on behalf of the income generator rather than the entity deducting the tax. For instance, if an employer deducts tax on behalf of an employee, it signifies that the employee has fulfilled their tax obligation, but it does not automatically imply that the employer has also remitted the deducted tax. This is where penalties and late payment charges come into play.

In our daily lives, we encounter terms like late payment fees and fines for unpaid bills or outstanding payments. Similarly, in the realm of income tax, the Income Tax Department (ITD) imposes penalties or late payment fees on individuals who do not adhere to tax laws or fail to fulfill their tax responsibilities in a timely manner. When such individuals fail to meet their tax obligations promptly, penalties are imposed, accompanied by interest.

Likewise, if a deductor or employer who deducts TDS (Tax Deducted at Source) from the income of their employees fails to remit the TDS to the government or submit the requisite tax documents to the IT department on time, they become liable to pay penalties for the delayed or non-payment of TDS. Section 234E of the Income Tax Act, introduced on July 1, 2012, addresses the late payment fees or penalties applicable for the delayed submission of quarterly TDS/TCS returns by the deductor to the ITD.

Late Filing Fee If Miss The TDS/TCS Return Due Date

As per Section 234E, a late fee of INR 200 per day is applicable for delayed filing of TDS/TCS returns, and this fine accrues for each day of delay until the late payment charges equal the amount of TDS, with an upper limit not exceeding the TDS amount itself.

To illustrate this, consider an example. Suppose you have a TDS amount of INR 5000 due on March 1, but you submit the TDS amount on June 30. The total penalty is calculated as INR 200 multiplied by 122 days of delay, resulting in INR 24,400.

However, since the calculated penalty of INR 24,400 exceeds the actual TDS amount of INR 5000, you would only be required to pay the late filing charges up to the TDS amount, which is INR 5000 in this case..

Interest in Non-Payment of TDS/TCS

In addition to the penalty, interest is also levied and is payable by taxpayers prior to filing the TDS return. The interest rates are specified in Section 201A.

For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, and CTT made between March 20, 2020, and June 30, 2020, a reduced interest rate of 9% (as opposed to 12%/18% per annum, i.e., 0.75% per month instead of 1/1.5 per cent per month) will be charged for this period. No late fee or penalty will be imposed for delays during this specified period.

However, for non-deducted or short payments of TDS/TCS made after June 30, the following interest liabilities apply:

• If a part or the entire tax amount is not deducted at source, 1% per month interest is applicable on the TDS/TCS amount. The interest period begins from the date on which the tax was deductible and continues until the actual date of deduction.
• If a part or the entire TDS amount is not paid, 1.5% per month interest is applicable on the TDS/TCS amount. The interest period commences from the deduction date and lasts until the actual date of payment.
• A late payment of TDS after deduction incurs interest at the rate of 1.5% per month, calculated from the date of deduction to the actual date of deposit.

It’s important to note that interest is calculated on a monthly basis, considering a part of a month as a whole month.

For instance – If you have to pay the TDS amount of INR 3000 which you deducted on January 15th. But you paid this TDS after the actual date of the TDS deposit, on May 29th. So, the interest will be calculated as INR 3000 X 1.5% per month X 5= INR 225.

However, according to many High Court Cases, a month is a period of thirty days. But Under the Income Tax Act, of 1961, there is no precise definition for a month.

The most noteworthy point:

• The calculation of interest for the payable TDS amount is done on the basis of the date from when the TDS was deducted instead of the date on which it was due.

For example: If the due date of the TDS payment is April 15th and the TDS was deducted on March 30th. So, here the interest will be calculated for the time period starting from March 30th, instead of April 15th which is the due date.

It becomes quite troublesome when you miss the due date of the TDS payment by a day or two. Let’s suppose May 10th was the due date for paying TDS for a TDS that was deducted on April 15th and due to any reasons you missed the due date but paid the TDS on the very next day means on May 11th. In such a case, the interest calculation will begin from April 15th, and unnecessarily you would have to pay interest for two months, i.e., 1.5% per month X 2= 3%.

Therefore, it is very important to pay TDS before the due date of TDS payment to avert such obligations of paying huge interest and penalties. 

Penalty

According to the norms of the Income Tax Act, You might become liable to pay the penalty of an equal amount as the deducted/collected amount

Prosecution under Section 276B

Section 276B states that if a person fails to pay to the credit of the Central Government within the specified time, as mentioned above, the TDS by him according to the provisions of Chapter XVII-B, he shall be penalized with fine along with severe imprisonment for a time period between 3 months and 7 years. The punishment will be based on the circumstances or the inspection done by the concerned tax authority or assessment officer.

Penalty Sections for Late Filing of TDS/TCS Return

• Penalty (Sec 234E): The TDS deductor is obligated to pay a penalty of INR 200 per day to the IT department until the entire TDS amount is paid. However, this penalty is capped at the actual TDS amount and cannot exceed that limit.
• Penalty (Sec 271H): According to Section 271H, if an individual fails to file the TDS/TCS return by the due dates, the Assessing Officer has the authority to impose a penalty under this section, in addition to the late fee prescribed by Section 234E. The penalty under Section 271H ranges from INR 10,000 and can go up to INR 1,00,000 if the Deductor/Collector submits an inaccurate return.

There are certain conditions under which no penalty is levied for the delayed filing or payment of TDS/TCS return as per Section 271H:

1. The tax deducted at source is paid to the credit of the government.

2. The interest, along with late filing fees, is paid to the credit of the government.

3. The TDS/TCS return is filed before the expiry of a one-year period from the due date, provided that the submitted return is accurate.

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Authored by Arghya Sen, 3rd year BALLB(Hons.) Student at Amity University, Kolkata