TAX DEDUCTED AT SOURCE
The Income-tax Act has incorporated a system of deduction of tax at the point of generation of income. This system is called “Tax Deducted at Source” also known as TDS.
Under this system, tax is deducted at the point of origination of income. Tax is deducted by the payer and the same is directly remitted to the Government by the payer on behalf of the payee.
Tax deducted at Source applies on various provisions i.e salary, Interest, commission, brokerage, professional fees, royalty, etc.
Who can Furnish TDS Statement?
Every person responsible for deduction of tax shall furnish quarterly statements.
Due Date for filing the TDS statement:
The quarter ending of the financial year if the deductor is an office of government or non-government deductor.
|Quarter||Period||Date of filing|
|1st Quarter||1st April to 30th June||31st July|
|2nd Quarter||1st July to 30th September||31st October|
|3rd Quarter||1st October to 31st December||31st January|
|4th Quarter||1st January to 31st March||31st May|
Due date to deposit Tax:
According to section 200 of the Income Tax Act, it is the duty of the deductor to deposit the TDS to the account of the government within the prescribed period.
The due date to deposit TDS is the same day when the deduction is made by the government offices if payment is made without the generation of challan.
|Tax Deductor||Period||Due Date|
|Government Office(With Challan) and Other Deductors||For any other month||7th of the succeeding month|
|Other Deductor||For the month of March
||30th April for next Financial Year|
DUE DATE TO DEPOSIT TDS ON QUARTERLY BASIS:
As per section 30, The assessing officer may, with the prior approval of joint commissioner may permit quarterly payment of Tax deducted under section 192 or section 194A or section 194D or section 194H
The below table shows the Due Date of depositing TDS on a quarterly basis:
|QUARTER ENDING||DUE DATE|
|30th June||7th July|
|30th September||7th October|
|30th December||7th January|
|31st March||30th April|
FURNISHING OF TDS STATEMENT:
The Quarterly TDS can be furnished in any of the following modes;
MODE OF PAYMENT OF TDS:
Tax Deducted at source can be deposited to the credit of the Central Government in the following modes:
It is mandatory for-
DUE DATE TO FILE TDS AMIDST COVID-19:
The due date for the filing of the last quarter of the TDS returns for FY 2019-20 as per the existing provisions was May 30, 2020. This is now extended to June 30, 2020. TDS certificates may also be furnished by June 30, 2020.
CONSEQUENCES OF FAILURE TO DEDUCT TDS:
Under section 201 covers the consequences of failing to deduct TDS. Any assessee failing to deduct TDS shall be charged 1.5% per month from the date of deduction to the date of payment.
PENALTY FOR FAILURE TO FILE TDS RETURN:
In addition to late fees, the deductor is also liable to pay penalty under section 271H. The minimum penalty shall be levied of Rs. 10,000 which can go upto Rs. 1,00,000. No penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if the deductor meets the following conditions:
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