TDS Payment Duedates and Interest For Delay in Payment of TDS

TDS Payment is liable to be made by any assessee who has deducted TDS at the time of incurring any expenditure. The Due Date for TDS Payment is separate for Govt. and Non-Govt. assessee’s as mentioned below.

Payment of TDS

Due Date for TDS Payment in case of Govt. Assessee

S. No.	Particulars	Due Date
1.	Tax Deposited without Challan	Same Day
2.	Tax Deposited with Challan	7th of next month
3.	Tax on perquisites opted to be deposited by the employer	7th of next month

 

Due Date for TDS Payment in case of Non-Govt. Assessee

S. No.	Particulars	Due Date
1.	Tax Deductible in March	30th April of next year
2.	Other Months and Tax opted to be deposited by the employer	7th of next month

Note: Time limit for TDS deposition on transfer of immovable property from 7th day to 30th day with effect from 1st June 2016 i.e. if property is sold in the month of June than TDS can be deposited by 30th July earlier due date was 7th July.

The Assessing Officer may with the prior approval of the Joint Commissioner permit

quarterly payment of TDS as specified in the table below:-

S. No.	Quarter ends on	Due Date
1.	30th June	7th July
2.	30th September	7th October
3.	31st December	7th January
4.	31st March	30th April

It is mandatory for all corporate assesses and all other assessees liable for Tax Audit under section 44AB of the Income Tax Act to deposit the TDS Online. Assessee’s who do not fall in the above 2 categories are at the option of either making online payment or by depositing the same with the prescribed banks.

Now you can pay TDS through the Online Service Portal : Income Tax E- Payment

Interest on Late Payment of TDS

As per section 201, if any person who is liable to deduct tax at source does not deduct it or after so deducting fails to pay, the whole or any part of the tax to the credit of the Government, then, such person, shall be liable to pay simple interest as given below:

•  Interest shall be levied at 1% for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax was deducted.
•  Interest shall be levied at 1.5% for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax was actually remitted to the credit of the Government.

In other words, interest will be levied at 1% for every month or part of a month for delay in deduction and at 1.5% for every month or part of a month for delay in remittance after deduction. 

Note: Interest @ 1.5% is liable to be paid from the date on which the TDS was deducted and not from the date the TDS was due. This can be explained with the help of an example.

For More Information see Income Tax Department Guidlines

Thank you friends next time we will meet in Advance Tax Due dates post..........Bye....

--All the above contents only for Public reference and not for any other purpose. Therefore, I can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog--- 
Thanks & Regards

S. Praveen Kumar Reddy.

(source:Income Tax Department Guidlines)