Filing
TDS Returns
TDS is an abbreviation for tax deducted at source. As per income tax act, every individual, partnership, LLP, trust & company etc who are liable for tax audit are required to deduct a certain percentage from the payment if the same exceeds the threshold i.e. limits as provided by the government. This deducted amount should be deposited to the government monthly.
Any person making the following payment is required to deduct TDS on payments made which includes: –
- Salary
- Commission
- Professional fees
- Technical fees
- Rent
- Consultation fees
- Interest
- Foreign payment
- Advertisement fees
- Contract fees etc.
In case of non-deduction of TDS, expense on which TDS was required to be deducted, would be disallowed and would be added to a part of income of person/assessee by disallowing the same expenditure. Further, notice would be issued to assessee/person for default in TDS compliance. FOLLOWING ARE THE CONSEQUENCES FOR DELAY IN FILING OF TDS/TCS RETURNS: –
- It would lead to penalty of Rs.200 per day and interest of 1%/1.5% per month of TDS amount deducted/deposited.
- In case, if period of delay in filing of TDS returns is more than 1 year then it would lead to additional penalty ranging from Rs.10,000 to Rs.1,00,000 & prosecution.
REASONS FOR FILING OF TDS RETURNS: –
- To facilitate the reconciliation of the ITR i.e., TDS deducted by deductor is reflected in the Form 26AS of the deductee in the respective financial year.
- To avoid the disallowance of expenditure i.e., as delay in TDS filing & failure of deduction of TDS would lead to disallowance of expenditure on which TDS required to deducted but not deducted or else TDS deducted but not deposited with government.
DUE-DATES FOR TDS PAYMENT: –
| Month | DUE DATE |
|---|---|
|
APRIL TO FEBRUARY
|
7TH OF EVERY SUCCEEDING MONTH IN WHICH TDS GOT DEDUCTED.
|
|
MARCH
|
30TH APRIL.
|
DUE-DATES FOR TDS RETURNS: –
| QUARTER | DUE DATE |
|---|---|
|
APRIL TO JUNE.
|
31ST JULY.
|
|
JULY TO SEPTEMBER.
|
31ST OCTOBER.
|
|
OCTOBER TO DECEMBER.
|
31ST JANUARY.
|
|
JANUARY TO MARCH.
|
31ST MAY.
|
BRIEF ABOUT FORMS: –
- FORM 24Q – When the payment is in nature of the salary to employees, then employer is required to file this quarterly.
- FORM 26Q – for all the payments to resident individual other than salary, the deductor is required to file FORM 26Q on quarterly basis.
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