Penalty for Late & Non Filing of TDS Returns (A.Y.2023-24)

Penalty for Failure/Delay in Filing TDS/TCS Returns (A.Y.2023-24): In accordance with Income Tax Act, every deductor (who deducts TDS on behalf of a payee) must deposit TDS within the prescribed limit to the account of the Income Tax department. Persons who fail to deduct or pay tax are liable for penalties under the Income Tax Act. Those who deduct TDS are also required to file a TDS/TCS statement or return within the prescribed time frame. He will be required to pay a fee or penalty if he fails to do so. The purpose of this article is to discuss the time limit and penalty for failing to deposit TDS by the due date.

Check Time Limit to Deduct TDS and Deposit TDS 

Penalty for TDS Returns Default

Due Dates to File TDS Returns/ TDS Statements (A.Y.2023-24):  The first thing you should do is find out the due dates for filing TDS returns, and then later you can check the penalties for late filing or non-filing of TDS Return.

  • for the quarter ending on 30th June – 31st July (due date)
  • for the quarter ending on 30th September – 31st October (due date)
  • for the quarter ending on 31st December – 31st January (due date)
  • for the quarter ending on 31st March – 31st May (due date)

Penalty for TDS Return Default: Here you can check the penalty for late filing or non-filing of TDS return.

As you know the payer or deductor shall furnish the TDS return on or before due dates otherwise he is liable to pay penal interest or penalty as follows.

  • Rs.200 per day of default u/s 234E applicable if TDS/TCS return after due dates.
  • If a TDS/TCS return is filed after 1 year of the prescribed date, the penalty may be from Rs.10,000 to a max of 1,00,000 shall be applicable.

Time-Limit for Issue of TDS Certificate

Due date to Issue TDS Certificate (A.Y.2023-24):The following table shows the due dates for issuing TDS certificates. The penalty is imposed if the TDS certificate is not issued in time. The penalty is listed below.

Quarter ending Due date for issue TDS Certificate
30th June 15th August
30th September 15th November
31st December 15th February
31st March 15th June

Penalty for Not Issuing TDS Certificate (A.Y.2023-24): The penalty of Rs.100 per day for each certificate is delayed. The amount of penalty can not exceed the TDS amount for the quarter.

Due Date of Payment of TDS and TCS

TDS/TCS Period TDS Due Date TCS Due Date
From April to Feb Months 7th of next month 7th of next month
March 30th April of Next FY 7th April of next FY
If TDS deducted u/s 194-IA, 194-IB or 194M then it should be deposited within 30 days from the end of the month in which deducted along with return in Form 26QB, 26QC, 26QD.

Interest on Late Payment or Non-Deduction of TDS (A.Y.2023-24)

If any person liable to deduct or collect tax at source or any person who opts to deposit TDS on perquisites on behalf of his employee, fails to deduct or collect the whole or part of TDS/TCS or fails to deposit the tax deduct/collected by him, he shall be liable to pay simple interest as under:

  • Penal Interest for Delay in Payment of TDS: Interest @1.5% per month or part of the month on the amount of TDS from the date on which TDS is actually deducted till the date on which such tax is actually paid.  (Section 201 (1A)
  • Penal Interest for Delay in TDS Deduction: Interest @1% per month or part of the month on the amount of TDS from the date on which TDS was deductible till the date on which TDS actually deducted. (Section 201 (1A)
Categories TDS

19 thoughts on “Penalty for Late & Non Filing of TDS Returns (A.Y.2023-24)”

  1. Hi,

    I am a NRI and have bought an under construction apartment for the total cost of around Rs. 51 lakhs from a builder in 2014. I have paid multiple installments since 2014 without deducting TDS. Total amount of installments paid up till now is Rs 48 lakhs. The apartment is almost ready for possession and I am about to make the final payment and want to deduct the TDS now. I have the following questions:
    1. Since I did not pay TDS on the installments since 2014, should I be paying interest and penalty on the unpaid TDS? If so, how is that calculated? And will this interest and penalty come out of my pocket (so I don’t deduct this from the payment which I made to the builder)?
    2. As per my understanding, I have to deduct total TDS of 1% which is Rs 51000. So I should be paying Rs 50,49,000 in total to the builder. Is this correct?
    3. Apart from the cost of the apartment, there are some more charges which the builder is asking at the time of possession (like escalation charge, additional compensation charge, labor welfare charge, etc.). Is TDS also calculated on these or just on the cost of the apartment?
    4. The service tax which I have to pay to the builder, is that calculated on the total cost (51 lakhs) or on cost after deducting TDS (50,49,000)?

    Could you please help with my queries. Appreciate your response.

  2. I bought a property in 2014 and have not paid the TDS with the installments paid until now. Can i still pay the TDS ? What would be the consequences of paying the TDS now ?.

    Can someone help.

    • Can you tell what is the value of property as per registered amount. If you have paid over 50 lakh then you need to deduct TDS. If it is over 50 lakh then you have to calculate TDS now and paid without any delay. As it attracts penalty of Rs. 1 lakh on failure.

      Now you need to do the follow steps:
      Deduct TDS on instalments you have paid @1% and deposit it without any delay with interest of 1.5% on TDS amount.

      Please ask further if you have any query. Thanks

  3. Monthly TDS payment date is 7th of every month and if there is government holiday on 7th and we make payment on 8th of that month then is there any requirement to pay interest on TDS ?

  4. Sir, A Pvt. Ltd. Co raised a jobwork Bill for Rs. 106378 on dt. 08.09.2015. But we are failed to deduct TDS & Retun. Now Suggest how to filed Return with Late Interest

  5. Hi
    I have received letters from Income Tax department (TDS) regarding interest on late payment & late filing for Q1 (Rs1370/-) and Q2 (Rs450/-) as on 6/08/2015 & 29/10/2015 respectively.
    But I have not yet paid both the amount. Now I want to make online payment. So, what would be the nature of payment in Challan 281?
    N.B: I have deducted TDS on a/c 94C (Payment contractor & sub contractor).

    Kindly help.

    Motiulla, Kolkata

    • From the date when deductible till actual deduction 1% p.m.; From the date of deduction till payment 1.5% p.m.

  6. Suppose i have deducted the TDS and deposited the same on time, but under different section. Like i have to deposit 10% but i deposited 2% and also filled the ITR after that a case arise. Is it a non payment / delay of payment/ or what?

  7. Tds we have deducted every month but we have to pay the every month 7th.But for the month of March what shall be the due date I will be 7 th April or 30th April

  8. there’s system failure due to which i am unable to pay tds via e-payment.
    Will the late payment still be in interest column?

    • Its better to ask these kind of questions to your CA. He is better equipped to answer these questions after understanding all facts of your case. Asking these questions on net, in my humble opinion, may be detrimental to you.

      CA. Deepak Bholusaria

    • Deduct tax immediately and deposit with interest @ 1% for the months of delay in deduction (i.e. from the date of payment to the person to the date of deduction). Also deposit the TDS immediately, otherwise you have also needs to pay interest on late deposit of TDS. Accordingly revise your tds return also.


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