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TDS Return & Payment Due Date For FY 2024-25

TDS Return & Payment Due Date For FY 2024-25

This article covers all the information about TDS related compliances.

Budget 2023 updates –

  • Section 194BA – Introduction of TDS on income from online gaming
  • Section 196A – Starting April 1st, 2023, non-residents earning income from mutual funds in India can provide a Tax Residency Certificate to avail the benefit of TDS as per rate given in tax treaty, instead of 20%.
  • Section 192A – TDS rate reduced to 20% from maximum marginal rate on PF withdrawal for employees who do not have PAN
  • Section 193 – No exemption from TDS on interest from listed debentures. Therefore, tax has to be deducted on interest on such specified securities.
  • Section 194N – TDS threshold has been increased on cash withdrawal by by co-operative societies. Starting April 1st, 2023, tax will be deducted on cash withdrawals by co-operative societies if the amount exceeds Rs 3 crore, instead of the previous limit of Rs 1 crore.

Budget 2022 updates –

  • New Section 194S- A person is liable for Tax Deduction at Source (TDS) at 1% at the time of payment of the transfer of virtual digital assets.
  • Sale of immovable property under Section 194-IA- It is proposed to amend the amount on which TDS should be deducted. The person buying the property should deduct tax at 1% on the sum paid/credited or the stamp duty value of such property, whichever is higher.
  • New Section 194R- TDS at 10% should be deducted by any person who provides perks or benefits, whether convertible into money or not, to any resident for carrying out any business or profession by such resident.
     

Forms for Filing TDS Returns

Form No.Description
Form 24QQuarterly TDS statement for tax deducted on salary payments.
Form 27QQuarterly TDS statement for tax deducted while making payment, other than salary, to non-resident (not being a company), and foreign company
Form 26QQuarterly TDS statement for other cases like TDS deducted on professional fees, interest payments, etc.

However, if tax is deducted at source under Sections 1194-IA, 194-IB and 194M the deductor shall furnish a challan-cum-statement in Form 26QB, Form 26QC and Form 26QD, respectively. The deductor should provide the challan-cum-statement within 30 days from the end of the month in which TDS is deducted. As an exception, no return is required separately in such cases.

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TDS Payment Due Dates

The dates for depositing the tax deducted at source and filing of TDS return for the financial year 2024-25 for all the deductors is shown in the below table-

Quarter endingMonth of deductionDue dates for depositing TDS   
(FY 2024-25)*		TDS Return Due Date  
(FY 2024-25)
30th June 2024April 20247th May 202431st July 2024
May 20247th June 2024
June 20247th July 2024
30th September 2024July 20247th August 202431st October 2024
August 20247th September 2024
September 20247th October 2024
31st December 2024October 20247th November 202431st January 2025
November 20247th December 2024
December 20247th January 2024
31st March 2025January 20257th February 202531st May 2025
February 20257th March 2025
March 20257th April 2025 (for tax deducted by govt. office)
30th April 2025 (for other deductors)

 

*For the government deductors, making the TDS via book entry (Treasury Challan) should be deposited on the same day of deduction, whereas for March month by 7th of April.

Penalty for Late Filing of TDS/TCS Returns

Late Filing Fee (Sec 234E)

 

Under Section 234E, a fee of Rs. 200 for every day would be charged for late furnishing of TDS/TCS statements from the due date of furnishing of the statements till the date of furnishing of the statements. However, the total amount of the fee cannot exceed the total amount of tax deductible/tax collectible and such fee has to be paid before delivering the TDS/TCS statements.

For example: Say that you have deducted TDS of Rs 5000 on 13th May 2024 and you file the return for Q1 on 17th November 2024 instead of the due date 31st July 2024.

The delay is 109 days counting from 1st August 2024 to 17th November 2024.

Then the calculation comes out to Rs 200 x 109 days = Rs 21,800, but since this amount is greater than TDS Rs. 5,000, you will have to pay only Rs. 5,000 as the late filing fee.

In addition to this, you also have to pay interest for delay in deposit of TDS which is covered in the next section.

Penalty (Sec 271H)

The Assessing Officer may direct a person who fails to file the statement of TDS/TCS within the due date to pay a minimum penalty of Rs 10,000 which may be extended to Rs 1,00,000. The penalty under this section is in addition to the late filing fee u/s 234E. This section will also cover the cases of incorrect filing of TDS returns.

No penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if the following conditions are satisfied:

  • The tax deducted/collected at source is paid to the credit of the Government.
  • Late filing fees and interest (if any) is paid to the credit of the Government.
  • The TDS/TCS return is filed before the expiry of a period of one year from the due date specified on this behalf.

Interest on Late Deposit of TDS

SectionNature of DefaultInterest subject to TDS/TCS amountPeriod for which interest is to be paid
201(1A)(i)TDS not deducted (fully/partly)1% per monthFrom the date on which tax is deductible to the date on which tax is actually deducted.
201(1A)(ii)TDS not deposited to the government after deduction (fully or partly)1.5% per monthFrom the date of tax deduction to the date of deposit

Note: The above interest should be paid before filing of TDS return.

Under Section 201(1A), in case of late deposit of TDS after deduction, you have to pay interest. Interest is calculated at the rate of 1.5% per month from the date on which TDS was deducted to the actual date of deposit. 

Note: The interest is to be calculated on a monthly basis and not on the number of days i.e. part of a month is considered as a full month.

  • For example, the date of deduction of TDS of Rs 5,000 is 13th January 2024. If you pay TDS on 17th May 2024, then the interest you owe is from 13th January 2024, i.e. is Rs 5000 x 1.5% p.m. x 5 months (Jan-May)= Rs 375.
  • “Month” has not been defined in the Income Tax Act, 1961. However, in a number of High Court cases, it has been mentioned that it should be considered as a period of 30 days and not as an English calendar month.
  • The interest is calculated from the date on which TDS was deducted and not from the date TDS was due.
  • Also, consider the case in which you deposit tax one month after the due date. Say you have deducted TDS on 21st February 2024. Then the due date is 7th March 2024. If you deposit tax on 8th March 2024 (i.e. one day after the due date). Then interest is applicable from 21st February 2024 to 8th March 2024 i.e. for a period of 2 months. You now have to pay interest of 1.5% p.m. x 2 months = 3% on the TDS amount.

Prosecution (Sec 276B)

If a person fails to pay to TDS to the credit of the Central Government as required by or under the provisions of Chapter XVII-B, he shall be punishable with rigorous imprisonment for a term not less than three months but which may extend to seven years, and with a fine.

Penalty provisions due to COVID-19 lockdown 2020

In the wake of the lockdown, the department has waived off all the penalty provisions for the period between 20th March 2020 to 30th June 2020 as per the Ordinance 2020. In the normal period of business, a penalty equal to the amount that was failed to be deducted/collected or remitted may be imposed.

Penalty for Late Payment or Non-Payment of TCS

 

If the person fails to deposit to the government TCS under Section 206C within the prescribed due dates, he shall be punishable with rigorous imprisonment for a term not less than three months but which may extend to seven years and with a fine.

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Frequently Asked Questions

If the deductors (other than office of government) deduct TDS in any month, tax must be paid on or before 7th of the next month. However, the TDS deducted in the month of March can be deposited till 30th April. For TDS deducted on rent and purchase of property, the due date is 30 days from the end of the month in which TDS is deducted.

TDS on salary is calculated according to the income tax slab applicable to the employee after adjusting all eligible deductions and exemptions. Salary is one of the incomes where the employer (deductor) deducts full tax liability as TDS

You can file TDS after the due date, however penalty of Rs 200 per day as per Section 234E needs to be paid. The deductor is liable to pay the penalty for every day during which the failure continues. However, the amount of late fees cannot exceed the TDS.  
Also, penalty under Section 271H can be levied by the department which is in the range of Rs 10,000 – Rs 1,00,000. Penalty under this section is in addition to the late filing fees specified above under Section 234E.

These Forms are the respective formats prescribed by IT department for TDS/TCS returns. Form 24 is prescribed for return of TDS details on salary payments, Form 26 for Return of TDS details on other than salary payments (Domestic), Form 27 is also for Return of TDS details on other than salary payments (NRI/Foreign) and Form 27E is for TCS returns.

TDS Meaning and Full Form. TDS, or Tax Deducted at Source, is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest, etc. Usually, the person receiving income is liable to pay income tax.

It is the deductor's responsibility to deduct TDS before making the payment and deposit the same with the government. TDS is deducted irrespective of the mode of payment–cash, cheque or credit–and is linked to the PAN of the deductor and deducted.

Yes, the deduction for TDS on salary is mandatory under Section 192 of the Income Tax Act. Every employer who pays salaried income to his employees must deduct TDS on salary if the income amount is over the basic exemption limit.

To compute the TDS, the employer is required to estimate the taxable net salary and deduct the TDS from it. Exemptions and tax-free allowances are deducted from the gross salary to calculate the net salary income.

No, TDS is to be calculated on amount excluding GST i.e. taxable value.

The late fee for filing the TDS return after the due date is Rs. 200 per day till the default continues. However, late fee cannot exceed the amount of TDS deducted.

The interest liability for failure to deduct tax is 1% for every month or part of the month on the amount of tax from the date on which tax was deductible to the date on which such tax was actually deducted.

The interest liability for failure to deduct tax is 1.5% for every month or part of the month on the amount of tax from the date on which tax was deducted to the date on which such tax is actually paid.