It takes time to build a business and an important lesson while growing is to save cost. Penalties and fines are important ways of checking undue expenses. TDS default is very common among startups. Let us go through this due date and mark it in our calendars so that we do not miss any of them.

 

In this article we shall try to focus on TDS and its due dates-

 

1. TDS Payment:

TDS Payment is liable to be made by any assessee monthly 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 as mentioned below:

Due Date for TDS Payment in case of Govt. Assessee:

Particulars	Due Date
Tax deposited without challan	Same Day
Tax deposited with challan	7th of next month

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

Particulars	Due Date
Tax Deductible in other months except March;	7th of next month
Tax Deductible in March	30th April of next year

 

In case, the assessee fails to deposit the TDS amount within the stipulated time mentioned above, then interest @ 1.5% (@ 1% for non deduction) per month or part of month is charged on the amount of tax from the date on which such tax was deducted to the date on which such tax is actually paid. This means that we never consider any fraction of a month and in case there exist any fraction, it gets rounded off to the nearest multiple and interest gets charged for a full month period.

Also, interest is liable to be paid from the date on which the TDS was deducted and not from the date when TDS has become due.

 

 2. TDS Return Filing:

Quarter	Due Date
April to June	31st July
July to Sept	31st Oct
Oct to Dec	31st Jan
Jan to March	15th May

The TDS Return is filed quarterly within the stipulated time. The due date for filing TDS Return is as follows:

In case of delay filing of TDS Return, penalty of Rs. 200 per day till the time the default continues from the due date is charged, but should not exceed the total amount of tax deducted.

 

This can be well explained with the help of an example:

 

• If TDS is deducted on 05.04.2016 and is deposited on 25.05.2016, then what is the calculation of interest?

According to the TDS provision, default month in payment of TDS is calculated from the Date Deduction of TDS till the Date of Actual Payment of TDS. Therefore, interest shall be charged from 05.04.2016 to 25.05.2016 i.e. 50 days which gets rounded off to 2 months as the provision is for every month or for a part of a month.

 

• But, what happens to the calculation of interest, if TDS is deducted on 05.04.2016 and is deposited on 07.05.2016?

In this case, no interest will be charged as we should keep in mind the due date for making the payment of TDS. Every person who has deducted TDS is liable to make the payment of TDS to the government monthly and pay it within 7 days from the end of the month i.e. on or before 7^th of the subsequent month. So, here the due date for making the payment of April month TDS is 7^th May i.e. the subsequent month of April.

 

If you want us to remember and file your TDS Returns feel free to write to us at Taxmantra.com