Offer ends on
0
DAYS
0
HOURS
0
MINS
0
SECS
2020-04-14 10:18:29GST CenterEnglishThis article lists the TDS payment due dates and penalties for non-payment or late filing of TDS returns to the income tax department.https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2020/04/TDS-Payment-Due-Dates-TDS-TDS-Payment-Dates-for-2020-2021-.jpghttps://quickbooks.intuit.com/in/resources/gst-center/tds-payment-due-dates/TDS Payment Due Dates: TDS & TDS Payment Dates for 2020-2021

TDS Payment Due Dates: TDS & TDS Payment Dates for 2020-2021

9 min read


The concept of TDS was introduced to collect tax at the very source of income.

Accordingly, any person (deductor) liable to make payment of particular nature to any other person (deductee) shall deduct Tax at Source and remit the same to the government.

Furthermore, the deductee from whose income TDS has been deducted shall be entitled to get credit of the amount so deducted.

Also, the deductor shall issue TDS certificate to the deductee. In addition to this, the deductor needs to furnish TDS returns on quarterly basis in the prescribed format and within the prescribed dude date.

Similarly, TCS stands for Tax Collection at Source that the seller has to collect from the buyer who purchases goods from the seller.

This article lists the TDS payment due dates and penalties for non-payment or late filing of TDS returns to the income tax department.

TDS Payment Due Dates 2020 – 2021

MonthDue Date for TDS PaymentDue Date for Furnishing Challan-cum-StatementDue date for filing of TDS return (Both for Government and other Deductor) 
January 2020January 7, 2020 (for the month of December 2019)January 30, 2020 (for the month of December 2019)January 31, 2020 (for the quarter of October, 2019 to December, 2019)
February 2020February 7, 2020 (for the month of January 2020)March 2, 2020 (for the month of January 2020)
March 2020March 7, 2020 (for the month of February 2020)March 30, 2020 (for the month of February 2020)
April 2020April 7, 2020 (for the month of March 2020)March 30, 2020 (for the month of March 2020)
May 2020May 7, 2020 (for the month of April 2020)May 30, 2020 (for the month of April 2020)May 31, 2020 (for the quarter of January, 2020 to March, 2020)
June 2020June 7, 2020 (for the month of May, 2020)June 30, 2020 (for the month of May, 2020)
July 2020July 7, 2020 (for the month of June, 2020)July 30, 2020 (for the month of June, 2020)July 31, 2020 (for the quarter of April, 2020 to June, 2020)
August 2020August 7, 2020 (for the month of July, 2020)August 30, 2020 (for the month of July, 2020)
September 2020September 7, 2020 (for the month of August, 2020)September 30, 2020 (for the month of August, 2020)
October 2020October 7, 2020 (for the month of September, 2020)October 30, 2020 (for the month of September, 2020)October 31, 2020 (for the quarter of July, 2020 to September, 2020)
November 2020November 7, 2020 (for the month of October, 2020)November 30, 2020 (for the month of October, 2020)
December 2020December 7, 2020 (for the month of November, 2020)December 30, 2020 (for the month of November, 2020)

Late Filing Fees and Penalty

In case a person fails to file TDS returns or does not file such returns on or before the prescribed due dates, such a person has to pay late fees as per section 234 (E) of the income tax act.

In addition to the late filing fees such a person is also liable to pay penalty under section 271 (H).

Late Filing Fees under Section 234(E)

As per this section, there can be a case where a person fails to file TDS/TCS returns within the prescribed due date.

If such a situation arises then the person failing to file such returns is liable to pay a fee of Rs. 200 everyday during which the failure continues.

However, the total amount of such late fee cannot exceed the amount of TDS. This means that the TDS/TCS return cannot be filed until the person does not make payment of the late filing fees.

That is to say, the person filing delayed TDS/TCS returns must deposit the late filing fees before filing the TDS return. It is important to note that Rs. 200 per day is not a penalty. Rather, it is a late filing fees.

TDS Example (Where Penalty is Less than TDS)

Mr. Saxena files the TDS return for the first quarter of 2019 – 2020 on April 4, 2020. TDS during the quarter amounted to Rs. 8,40,000. Now in this case the due date to file TDS return for the first quarter of FY 2019-2020 (April 2019 – June 2019) is July 31, 2019. Since Mr. Saxena filed TDS return on April 4, 2020, there was a delay of 248 days. Following table shows the total number of delayed days:

ParticularsDays
August 201931
September 201930
October 201931
November 201930
December 201931
January 202031
February 202029
March 202031
April 20204
Total248

Now as per section 234(E), a fee of Rs. 200 per day would be charged for every day of delay. Therefore, the late filing fees would come to Rs. 49,600.

TDS Example (Where Penalty is More than TDS)

Mr. Verma files TDS return for the second quarter of 2019 – 2020 on April 4, 2020. TDS during the quarter amounted to Rs. 8,400. In this case the due date to file TDS return for the second quarter of 2019 – 2020(July – September 2019) is October 31, 2019. Since Mr. Verma filed TDS return on April 4, 2020, there was a delay of 156 days. Following table shows the total number of delayed days.

ParticularsDays
November 201930
December 201931
January 202031
February 202029
March 202031
April 20204
Total156

As per section 234 (E), a fee of Rs. 200 would be charged for every day of delay. Therefore, the late filing fees would come to Rs. 31,200. However, the late fees cannot exceed the amount of total TDS deducted. Since the TDS for the second quarter is Rs. 8,400, the late fee shall be Rs. 8,400 only.

TDS Example (Late Filing of TDS Return)

Mr. Kushal does not file the TDS return for the last quarter of FY 2019 – 2020 till May 31, 2020. The due date to file TDS return for the last quarter of the FY 2019 – 2020, that is January 2020 – March 2020 is May 31, 2020. Since Mr. Kushal could not file the return within the due date, he will have to pay a penalty. As per section 234(E), a fee of Rs. 200 would be levied for each day of default. Thus, Mr. Kushal cannot file his TDS return without paying the late fee as mentioned above. Furthermore, he will have to pay late fee before filing TDS return.

Penalty u/s 271(H)

The penalty under section 271(H) is levied if a person fails to file TDS/TCS returns within the prescribed due dates. Minimal penalty levied under this section is Rs. 10,000. However, this amount can go to a maximum up to Rs. 1,00,000. It is important to know that penalty under section 271(H) is in addition to the penalty prescribed under section 234(E).

Furthermore, section 271(H) also covers the cases of filing incorrect TDS/TCS returns in addition to delayed filing of TDS/TCS returns. This means that penalty under section 271(H) can also be levied if the deductor or collector files incorrect TDS/TCS return.

Accordingly, a minimum penalty of Rs. 10,000 and a maximum penalty of up to Rs. 1,00,000 in case deductor or collector files an incorrect TDS/TCS return.

Cases Where No Penalty is Charged

However, if a deductor or collector satisfies the following conditions, then no penalty under section 271(H) would be levied in case a deductor or collector makes a delay in filing TDS/TCS return:

  • TDS/TCS is paid to the credit of the government
  • Late filing fees along with interest (if any) is paid to the credit of the government
  • TDS/TCS return is filed before the expiry of a period of 1 year from the due date prescribed in this regard.

This means that no penalty would be levied under section 271(H) if a person fails to file TDS/TCS return provided such a person proves that after paying TDS/TCS along with fee and interest to the government, he had filed TDS/TCS return before the expiry of 1 year from the due date to file such a return.

Furthermore, it is important to note that the above mentioned relaxation is applicable only in case of penalty charged under section 271(H) for delay in filing TDS/TCS return.

Other Cases Where Deductor Gets Relief From Penalty

Such a relaxation is not applicable in case the deductor or collector files an incorrect TDS/TCS return. In addition to this, the taxpayer can get relief from penalty under section 271(H) in the following two cases where:

  • As per section 273A(4), the commissioner of income tax has power to waive or reduce penalty charged under the income tax act. Provided the conditions specified in section 273A(4) in this regard are satisfied.
  • As per section 273B, the taxpayer proves that there was a reasonable cause for not filing TDS/TCS return.

Interest in Case of TDS/TCS

In case of TDS/TCS, a person is liable ot pay interest for various kinds of delays or defaults. Under section(s):

  • 234A – interest is paid for delay in filing return of income
  • 234B – interest is paid for default in payment of advance tax
  • 234C – interest is paid for deferment of payment of single installment or installments of advance tax
  • 234D – interest is paid for excess refund given to the taxpayer
  • 201(1A) – interest to be paid for failure to deduct TDS or delay in payment of TDS
  • 206C(7) – interest to be paid for failure to collect TCS or delay in payment of TCS

Basic Rules Pertaining to Due Date of TDS Payment

It is important to first understand the rules regarding TDS payment due date before getting to know the provisions regarding interest to be levied for failure to deduct TDS or delay in TDS payment.

Accordingly, section 192 – 195 of the act lay down various payments on which the payer has to deduct TDS. Thus, the TDS deducted by the payer (a non – government payer) is to be paid to the government in the following way:

  • TDS deducted during the months of April – February should e paid to the government on or before 7 days from the end of the month in which TDS is deducted.
  • The TDS deducted during the month of March needs to be paid to the government on or before 30th day of April

Furthermore, TDS deducted under section 194 – IA (on immovable property) and section 194 – IB (on rent) must be paid to the government on or before 30 days from the end of the month from which TDS is deducted.

Interest for Failure to Deduct TDS or Delay in Payment of TDS

A taxpayer shall be liable to pay interest in case he does not deduct TDS or after deducting TDS fails to pay wholly or partly such TDS to the government. As per section 201 of the act, such a person shall be liable to pay simple interest in the following manner:

  • In case the taxpayer fails to deduct TDS, interest at the rate of 1% for every month or part of month shall be levied. This rate would be levied on the amount of tax from the date on which such tax was deductible to the date on which such tax was deducted.
  • In case the taxpayer fails to pay wholly or partly tax to the credit of the government, then interest at the rate of 1.5% shall be levied for every month or part of month. This rate would be levied on the amount of tax from the date on which such tax was deducted to the date on which such tax was actually paid to credit of the government.

This means interest at the rate of 1% would be levied for the month or part of month in case the taxpayer makes a delay in deducting TDS. And interest at the rate of 1.5% would be levied for every month or part of month in case the taxpayer makes delay in remitting the TDS to the government.

ParticularsInterest Rate
Failure or delay to deduct TDS1%
Failure to pay deducted TDS to the credit of the government1.5%

[/vc_column_text][/vc_column][/vc_row]

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Impact of COVID-19 on Financial Reporting

To guide auditors as well as chartered accountants, ICAI has developed an…

Read more

ICAI Guidelines on the Impact of Coronavirus on Auditing of Financial Statements

The outbreak of COVID-19 has compelled the government to undertake measures such…

Read more

Best Ways for Accountants to get Referrals

Getting clients through referrals is a powerful way to boost sales and…

Read more