TDS Compliances for the month of March-2020 (Last Quarter) during COVID-19

♦ With the outbreak of COVID-19 and the countrywide lockdown since 24th March, 2020 a lot of confusion with respect to the tax compliance has raised. Since, the lockdown is countrywide the major issues that being faced aRE with the compliance of payment and filing TDS Returns.

♦ Therefore, here are the questions to your answers.

1. When to pay TDS for the month ending March-20? Is there any extension or not?

• As per the Act, the TDS for the month of march is to be paid by 30th April, 2020. Since, the country is lockdown there is no extension given for the payment of TDS.
• Hence, the last date to file your TDS payment for the month ending March is 30th April, 2020.

2. When do we need to file the TDS return for Q4-2020?

• The actual date of filing the TDS return for the Q4 is 31st May, 2020.However, due to pandemic issues the return filing date has been extended to 30.06.2020.
• Form 26Q(Other then salary), Form 24Q (Salary), Form 27Q(TDS on NRI)can be filed by 30.06.2020

3. Can payment under one head be adjusted with another head?

• Yes, the payment under one head can be used for adjusting payment under other head. Form FY 12-13 onwards the section code mentioned in the challan is no more relevant.
• Eg.: A payment made under section 194J is Rs 5000 which can be adjusted against the 194C.

4.What are the consequences of late payment of tax and late filing of returns during COVID-19?

• Late payment of TDS beyond 30h April, 2020 will attract the interest as

following :                        

• Late filing of TDS return will attract late fees under section 234E @Rs 200 per day for the period during which the default continues and maximum to TDS amount.

5. Employees TDS and Form 16?

• TDS on salary is to be deducted under section 192 and the payment of the same is to be made by 30th April, 2020. Late payment of TDS will attract the interest @0.75% per month or part of the month.
• Form 16 can be available after 15 days once the return is filed on by 30th June, 2020 i.e. on 15th July, 2020.

8.Whether there are any changes in TCS payments and returns?

• The Government has not specifically made any provisions for TCS during the COVID-19. Therefore, the same TDS provisions are applicable during the COVID-19.
• Actual date of making the TCS payment for the month ending March is 7th April ,2020 and filing the return for the same by 31st May, 2020.
• Due, to COVID-19 issues the TCS payment can be made by 30th April,2020.Late payment of TCS attracts the interest @0.75% per month or part of month.
• Further, due date for filing of TCS returns in Form 27EQ for Q4-2020 is extended to 30th June,2020 instead of 15th May, 2020.