TDS & TCS Due Date of Payment and Returns, Late fee, Interest & Penalty

Due Date of Payment of TAX Deducted at Source (TDS):

The due date for the payment of TDS (Tax Deducted at Source) is the 7th day of the next month, except for the month of March, where the due date is 30th April. TDS returns are to be furnished quarterly, but the payment to the credit of the government needs to be done monthly.

Due Date of Payment of TAX Collected at Source (TCS):

The Due date of payment of TCS (Tax Collected at Source), is also the 7th day of the next month. TCS returns are to be furnished quarterly, but the payment to the credit of the government needs to be done monthly.

Delay in Payment or Deduction of TDS/TCS cause Interest Liability:

1. Delay in Deposited the TDS/TCS : In case of delay in depositing or remitting the TDS amount after deduction, interest will be levied as per section 201(1A) at a rate of 1.5% for every month or part of a month.
2. Delay in Deduction of the TDS/TCS :If there is a failure or delay in deducting the TDS amount, interest will be levied at a rate of 1% for every month or part of a month, as per section 201(1A).

TDS Return Due Dates/Last Dates:

Late fee on TDS/TCS Return:

Late fees for delay in furnishing TDS/TCS returns are covered under section 234E of the Income Tax Act, 1961. If quarterly TDS returns or TCS returns are not furnished within the prescribed due date, a late filing fee of Rs 200 per day shall be levied for the period of the failure, provided that the amount of late fees does not exceed the amount of TDS/TCS.

The penal provision for TDS/TCS returns is covered under section 271H of the Income Tax Act, 1961. If a taxpayer fails to furnish the TDS/TCS return or furnishes incorrect information in the TDS/TCS return, a penalty of not less than Rs. 10,000 but not exceeding Rs. 1,00,000 may be imposed under section 271H.

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