TDS & TCS payment & Returns Due Dates 2024 with Late payment Interest & Late filing Late fee

TDS means ‘Tax Deducted at Source’. TDS is one of the modes of collection of taxes, by which a certain percentage of amount is deducted by a person at the time of making / crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government Account.

Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it can be deposited with the tax authorities.

Read More TDS Rate chart applicable for New FY 2024-25

Due Dates to pay TDS & TCS

• TDS to be paid monthly till 7th of next month but TDS of the month of March can be deposited till 30th April
• TCS to be paid monthly till 7th of next month

Due Dates for TDS & TCS Challan deposit are as below:

Due Date to File TDS Returns

Due dates of filing Quarterly TDS Statements(24Q, 26Q, 27Q) from F.Y 2016-17 onwards for Government & Non Government Deductors:

What will be due date to file TDS and TCS statement if last date falls on Sunday/Holiday

In that case due date will be considered as the next business day.

Due Date to File TCS Returns

Due Dates of Filing Quarterly Statement of TCS (27EQ) For Government & Non Government Deductors:

What will be due date to file TDS and TCS statement if last date falls on Sunday/Holiday

In that case due date will be considered as the next business day.

Click to Enroll for our Detailed & Practical TDS & TCS Returns filing course:

Consequences of Lat deduction, Late filing and Late Deposit of TDS/TCS Payment & Returns:

There will be a levy of Rs.200 per day under section 234E of the Income Tax Act, 1961 from the due date till the date when statement is filed.

There are 3 Types of consequences in case of TDS and TCS under Income tax:

• Late Deduction
• Late filing
• Late Payment

Late Deduction:

What is Late Deduction:

When tax is deducted later than the date on which it was deductible (i.e. date of payment /credit), Late Deduction interest will be charged.
As per the Income Tax Act, Date of Deduction should be the date of payment /credit on which payment/credit is made to the Deductee.

Late Deduction interest will be charged at the rate of 1% per month or part of the month from the date of payment /credit till the date on which TDS is actually deducted.

Example –

Late Filing:

As per section 234E, where a person fails to file the TDS/TCS statement on or before the due date prescribed by the Income Tax Act 1961, then person shall be liable to pay a sum of INR 200 for every day during which the failure continues. The amount of late filing fees shall not exceed the amount of TDS/TCS deducted/collected.

In case person default in payment of late fee u/s 234E, 1% Interest on late filing fee payable amount u/s 220(2) is levied when Deductor fails to pay demand within 30 days from the order pass date of Default Notice.

Suppose a taxpayer fails to file the TDS statement by the due date prescribed by the Income Tax Act 1961. Let’s consider the following details:

• TDS amount deducted: ₹50,000
• Due date for filing the TDS statement: 31st January 2024
• Actual date of filing the TDS statement: 15th February 2024
• Number of days of delay: 15 days

Late Filing Fees Calculation: Late filing fees = INR 200 per day Late filing fees = INR 200 * 15 = INR 3,000

In this case, the late filing fees would be INR 3,000, as it does not exceed the amount of TDS deducted (₹50,000).

Additionally, if the taxpayer defaults in paying the late fee under section 234E, 1% interest on the late filing fee payable amount will be levied under section 220(2).

Late Payment:

When Deductor deposits the TDS after due date of deposit, it is a case of late payment and interest will be charged accordingly. Interest on Late Payment will be calculated on the amount which has been paid after due date from the date of deduction till the date of deposit.
Note: If Date of Deduction of Tax will be the last date of the month, then that month will not be considered.

Interest at the rate 1.5% Per month will be applicable on TDS deposited amount from the date on which tax was deducted to the date on which tax is actually paid.
Note:
• Prior to 1st July 2010 will be 1% per month.
• In case of TCS rate of Late Payment Interest is 1%

Let’s say a taxpayer deducted TDS on 15th January 2024 but failed to deposit it by the due date. Here are the details:

• TDS amount deducted: ₹75,000
• Date of deduction: 15th January 2024
• Due date for deposit: 7th February 2024
• Actual date of deposit: 15th February 2024
• Number of days of delay: 8 days

Late Payment Interest Calculation: Late payment interest rate: 1.5% per month

First, calculate the number of months of delay: 8 days delay is less than a month, so it’s considered as a month.

Now, calculate the interest:

Interest = (TDS amount * Number of Moths of delay * Interest rate per annum)

Substituting the values:

Interest = (₹75,000 * 1 * 1.5%) = 1730

So, the late payment interest on TDS amounting to ₹75,000 would be approximately ₹1730

Summary of Late Deduction, Late filing and Late Payment:

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