TDS is a mode of collection of taxes by which a certain percentage of amount is deducted by a person at the time of crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government Account.
TCS is the tax collected by the seller from the buyer on sale, such that it can be deposited with the tax authorities.
Due Dates for TDS & TCS Challan deposit are as below:
| Period | Non- Government Deductor | Government Deductor |
| Tax deducted from April to February | 7th Date of the Subsequent Month | Tax deposit without Challan – Same Day
Tax deposit through Challan – 7th Date of the Subsequent Month |
| Tax deducted in March | For TDS: 30th April
For TCS: 7th April |
Tax deposit without Challan – Same Day Tax deposit through Challan – 7th Date of the Subsequent Month |
Due Dates for TDS Return Filing:
| Quarter | Quarter Period | Due Date |
| 1st Quarter | April-June | 31st July |
| 2nd Quarter | July-September | 31st October |
| 3rd Quarter | October-December | 31st January |
| 4th Quarter | January-March | 31st May |
Due Dates for TCS Return Filing:
| Quarter | Quarter Period | Due Date |
| 1st Quarter | April-June | 15th July |
| 2nd Quarter | July-September | 15th October |
| 3rd Quarter | October-December | 15th January |
| 4th Quarter | January-March | 15th May |
*If the due date to file TDS and TCS returns is a holiday, than in such cases the due date will be the next business day.
Types of Consequences in case of Late TDS and TCS under Income Tax
1. Late Filing
2. Late Deduction
3. Late Payment
1. Late Filing: According to Section 234E, when a person fails to file the TDS/TCS statement on or before the due date, than the person shall be liable to pay a sum of Rs.200 for each day during which such failure continues. The amount of late filing fees shall not exceed the amount of TDS/TCS deducted/collected. If in case the person makes a default in payment of late fee under Section 234E, than 1% interest on late filing fee is payable under section 220(2). Example:
- TDS amount Deducted: 50,000
- Due Date for filing TDS statement: 31st October
- Actual Date of filing TDS Statement: 15th November
- Delayed time: 15 Days
- LATE FILING FEES= 200*15= Rs. 3000.
- Also, if the person defaults in paying the late fee u/s 234E, 1% interest on the late filing fee payable amount will be levied u/s 220(2).
2. Late Deduction: When the tax is deducted after the date on which it was deductible, than the late deduction interest will be charged. Late deduction interest will be charged at 1% per month from the date of payment/credit till the date on which the TDS is deducted actually.
- Amount Paid: 2,00,000
- TDS Deducted: 20,000
- Date of Payment: 3rd April 2024
- Due Date of Deduction: 3rd April 2024
- Actual date of deduction: 14th May 2024
- Time Period of Delay: 2 Months
- Interest on Late Deduction: 20,000*2*1%= Rs. 400
3. Late Payment: When the Deductor deposits the TDS after the due date, it is termed as late payment, and interest is levied. Interest on late payment is charged on the amount paid after the due date from the date of deduction until the date of deposit. The interest rate is 1.5% per month for TDS deposits, calculated from the date of deduction to the date of actual payment. For TCS, the applicable interest rate is 1%.
Conclusion: Adhering to the due dates for TDS and TCS payments and returns is essential to ensure compliance with tax laws and avoid penalties. Late filing, deduction, or payment can lead to financial consequences, including late fees and interest charges. By staying informed and meeting these deadlines, taxpayers can fulfill their obligations efficiently and maintain a smooth tax compliance process.
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