Time limit to Deposit TDS and File TDS Return

TDS Payment due Date Every Quarter

Month of Deduction	Quarter ending	Due date for TDS Payment through Challan		Due Date for filing of Return from the financial year 2016-17 for All Deductors	Due Date for filing of Return for the financial year 2015-16
		*For Govt. Deductor	For Other Deductor		For Govt. Deductor	For Other Deductor
April	30th June		7th May	31st July	31st July	15th July
May			7th June
June			7th July
July	30th September		7th August	31st October	31st October	15th October
August			7th September
September			7th October
October	31st December		7th November	31st Jan	31st Jan	15th Jan
November			7th December
December			7th Jan
January	31st March		7th Feb	31st May	15th May	15th May
February			7th March
March		7th April	30th April

*All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government without challan (Treasury Challan) should be deposited on the same day of deduction.

In case you have not deposited TDS by the correct date, the following penalties are applicable:

1. Late filing fee (if you do not file by the deadline)
2. Interest (if you do not deposit the TDS amount in time)
3. Penalty (if TDS is not filed within one year of the due date)

Late Filing Fee

Under Section 234E, you will have to pay a fine of Rs 200 per day (two hundred) until your return is filed. You have to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS.

Section	Nature of Default	Interest subject to TDS/TCS amount	Period for which interest is to be paid
201A	Non deduction of tax at source, either in whole or in part	1% per month	From the date on which tax deductible to the date on which tax is actually deducted
	After deduction of tax, non payment of tax either in whole or in part	1.5% per month	From the date of deduction to the date of payment

Note: The above interest should be paid before filing of TDS return.

Under Section 201(1A) for late deposit of TDS after deduction, you have to pay interest. Interest is at the rate of 1.5% per month from the date at which TDS was deducted to the actual date of deposit. Note, that this is to be calculated on a monthly basis and not based on the number of days i.e. part of a month is considered as a full month.

Also, consider the case in which you deposit tax one month after the due date. Say you have deducted TDS on 1st August. Then the due date is 7th September. Now say you deposit tax on 8th September (i.e. one day after the due date). Then interest is applicable from 1st August to 8th September i.e. for a period of 2 months. You now have to pay interest of 1.5% p.m. x 2 months = 3%.

Penalty

Equals the amount that was failed to be deducted/collected or remitted may be imposed.

Prosecution (Sec 276B):

If a person fails to pay to the credit of the Central Government —

The Tax deducted at source by him as required by or under the provisions of Chapter XVII-B, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

Penalty for Late Filing of TDS Return

1. Penalty (Sec 234E)

The deductor will be liable to pay a fee of Rs. 200 per day until the failure to file TDS continues. However, the total penalty shall not exceed the amount of TDS for which the statement was required to be filed.

2. Penalty (Sec 271H)

The Assessing Officer may direct a person who fails to file the statement of TDS within the due date to pay a penalty of minimum Rs. 10,000 which may be extended to Rs. 1,00,000.

3. Additional Penalty

The penalty under Section 271H is in addition to the penalty imposed under Section 234E.

4. Incorrect Filing

Section 271H also covers the cases where the TDS return is filed incorrectly.

No penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if the following conditions are satisfied:

• The tax deducted/collected at source is paid to the credit of the Government.
• Late filing fees and interest (if any) is paid to the credit of the Government.
• The TDS/TCS return is filed before the expiry of a period of one year from the due date specified in this behalf.