Detailed Analysis of Due date of TDS Return For F.Y 2020-21

Last Updated On: July 31, 2020, 1 p.m.
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DUE DATES OF TDS RETURN F.Y 2020-21

Tax Deducted at Source (TDS) return is a quarterly statement submitted by the deductor to the Income Tax Department. The statement gives a clear summary of all entries for TDS collected and paid by the deductor to the Income Tax Department.

Due to the pandemic situation, the Government has given relaxation to all the taxpayers. Hence, there is a lot of confusion among the taxpayers regarding the filing due dates of the TDS return for Quarter 1 for the FY 2020-21.

 

Due dates as prescribed by the Income Tax Act:

Quarter Quarter Period TDS Return Due Date
1st Quarter 1st April to 30th June 31st July of the Financial Year
2nd Quarter 1st July to 30th September 31st Oct of the Financial Year
3rd Quarter 1st October to 31st December 31st Jan of the Financial Year
4th Quarter 1st January to 31st March 31st May of the Financial Year

 

As per the normal provision of Income Tax, the time limit to furnish the quarterly TDS Statement for the first quarter of the FY 2020-21 that ended on 30th June 2020 is extended to 31st July 2020.

Relaxation of Certain Provisions as per Taxation and Other Laws has been passed to provide relaxation related to tax matters under direct tax laws due to COVID-19 Pandemic.

Any time limit prescribed or specified or notified under the Act, which falls during the period from the 20th day of March 2020 to the 29th day of June 2020, or any other date after the 29th day of June 2020 as per the notification of Central Government for the completion or compliance of such action as-

Completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval made by the authority, commission or tribunal under the provisions of the specified Act;

Filing of an appeal, reply or application or furnishing of any report, document, return, statement or such other record under the provisions of the specified Act;

In case, where the specified Act is the Income Tax Act, 1961-

  • Making of Investment, deposit, payment, acquisition, purchase, construction or such other action, for the purposes of claiming any deduction, exemption or allowance under the provisions contained in-
  • Sections 54 to 54GB under any provisions of Chapter VI-A under the heading “B- Deductions in respect of certain payments”;
  • Such other provisions of that Act, subject to fulfillment of such conditions as notified by the Central Government.

Any services referred to in section 10AA of the Act, where the letter of approval required to be issued in accordance with the provisions of the Special Economic Zones Act,2005 has been issued on or before the 31st day of March 2020.

The Due dates of all compliances falling between 20-03-2020 to 31-03-2021 have been extended to 31-03-2021. This extension is not available for all those compliances which are mentioned in the proviso to the said notification. In the absence of reference to the due dates for filing of TDS statement for Q1 OF FY 2020-21.

CONCLUSION-

The due date for filing of TDS Statement for Q1 and Q2 falls beyond the due date for filing of TDS Statement of Q3. If the literal interpretation of the Notification is applied, the deductor gets time till 31-03-2021 to furnish TDS statements for Q1 and Q2 but for Q3 he is required to furnish the statement by 31-01-2021 as this due date is not falling between the stated duration of 20-03-2020 to 31-12-2020.

This will create a situation for the tax deductors where they have to prepare and submit the TDS statement of Q3 much before the due date of furnishing TDS statements of Q1 and Q2 of Financial Year 2020-21.

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