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.
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)