Tax Deducted at Source Compliances for the month of March-2020 during COVID-19
With the outbreak of COVID-19 and the country wide lockdown since 24th March, 2020, a confusion with respect to tax compliances has emerged. One of the major issue that is being faced is with regard to compliances for payment and filing of return for Tax Deducted at Sources (TDS). This article tries to answer questions that are being raised with compliances of TDS.
Ans. The due date for payment of TDS for the month of March-2020 is 30th April, 2020. There is no change in the due date of payment of TDS for the month of March, 2020.
Ans. In absence of availability of books the TDS liability can be ascertained depending upon the past trend of the business. For instance, under section 194I the TDS can be deducted as per the rent paid for previous months. TDS under section 194A can be deducted @10% on the interest calculated on outstanding loans.
Ans. Where there is any short payment of TDS, such amount of short payment will attract interest @0.75% per month or part of the month instead of 1.5% per month or part of the month.
Where there is an excess payment of TDS the same will be carried forward and can be utilised for future payment of TDS.
Ans. Excess payment of TDS can be refunded or carried forward to next FY at the option of the deductor:
For refund: Refunds will be given to those challans which are deposited 1st April, 2010 onwards other than section 195(non-resident). For Section 195 TDS refund is available functionality is available form FY 2007-08.
Carried forward to next FY: The TDS deposited can be carried forward to next FY. Such TDS can be used only for the previous and next financial year only (-1 and +1 FY). For instance, if TDS is paid for the FY 2019-20 and the challan remains unconsumed. Then such unconsumed challan can be used for adjusting payments for the FY 2020-21 or for any previous payments pending for the FY 2018-19).
Ans. Yes, the payment under one head can be used for adjusting payment under other head. From FY 2012-13 onwards the section code mentioned in the challan is no more relevant. A payment of Rs 10000 under section 194J can be used to adjust TDS paid under section 194C.
Ans. The actual due date for filing TDS return for Q4-2020 is 30th May,2020. However, due to COVID-19 the due date for filing TDS return for Q4-2020 in Form 24Q(TDS- Salary) and 26Q(TDS-other than salary) has been extended to 30th June,2020.
Ans. Late payment of TDS i.e. payment beyond 30th April,2020 (i.e. between 01st May,2020- 30th June,2020) will attract interest as following:
|Nature of default||Interest subject to TDS amount||Reduced Interest subject to TDS amount due to COVID-19|
|Non-deduction of TDS, either in whole or part||1% per month or part of the month||0.75% per month or part of the month|
|Non-payment of TDS (after deduction),either in whole or in part||1.5% per month or part of the month||0.75% per month or part of the month|
Late filing of TDS return will attract late fees under section 234E @ Rs 200 per day for the period during which the default continues.
Ans. TDS on foreign payments is required to be deducted when there is a foreign remittance made. Such foreign remittance requires filing of FORM 15CA and 15CB, as the case maybe. So deposit of TDS on foreign remittance is made as per the remittance made. For Instance, where a foreign remittance is made in the month of February, 2020 the due date for payment of TDS will be 7th March, 2020. Accordingly TDS return in FORM 27Q will be filed.
Ans. TDS on payments made to employee i.e. TDS on salary under section 192 is to be deducted and deposited by 30th April, 2020. Delay in deposit of TDS will attract interest @0.75% per month or part of the month.
FORM 16 is available after 15 days from the date of filing of return. During the COVID-19 FORM 16 shall be available by 15th July, 2020 if return is filed on 30th June, 2020.
Ans. The Government has not stated any separate process for TCS. Therefore, they are similar to TDS provisions during COVID-19. TCS payments for the month of Mar-2020 needs to be made within 30th April, 2020. Late payment will attract reduced interest @ 0.75% per month or part of the month .Further, due date for filing of TCS returns in Form 27EQ for Q4-2020 has been extended to 30th June, 2020 from 15th May, 2020.