Due Date for Payment of TDS – Quick Guide

Time limit to Deposit TDS

Here’s a quick guide on TDS Payment due dates, penalties and interest payable on late payment (deposit) of TDS.

Tax Deducted at Source or TDS is one of the sources of revenue of the government of India (GOI). GOI has made provisions to deduct tax while making specified payments (like Rent, Salary, Commission, Professional fees, etc.) through Income Tax Act.

Tax at source is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier.

The person making such specified payments is liable to deduct the TDS and deposit the same in the exchequer or central government account on or before due date.

Due Dates for Payment of TDS

Find below the Due dates of deposit of TDS month wise are summarized in tabular format.

TDS Deducted in MonthDue Date for Govt. DeductorDue Date For Other DeductorQuarter Ending
April7th May7th May
May7th June7th June
June7th July7th July30th June
July7th August7th August
August7the September7the September
September7th October7th October30th September
October7th November7th November
November7th December7th December
December7th January7th January31st December
January7th February7th February
February7th March7th March
March7th April30th April31st March

Important Points:

If any of the above mentioned due dates fall on a Sunday or public holiday, the next day will be taken as the last date for payment.

TDS_Payment_Due_Date

Interest on Late payment of TDS

Interest is chargeable on non deduction/short deduction or late deposit of TDS. There can two

Non Deduction of TDS in whole or part

As per section 201 of Income Tax, if any person liable to deduct tax at source, fails to deduct the whole or part of TDS is liable to pay Interest.

Interest is @1% per month or part of the month for the period from the date on which the tax was deductible to the date of actual deduction

Late Deposit of TDS Deducted

After deduction of tax at source, if a person fails to deposit TDS, either in whole or in part, have to pay interest.

Interest @1.5% per month or part of the month will be charged for late deposit of TDS for the period from the date at which TDS was deducted to the actual date of deposit.

Note: Period to be calculated on a monthly basis and not based on the number of days. That means part of a month will be considered as a full month.

As full month is considered in calculating interest, therefore if you delay payment by one day, you have to pay interest for two months.

For example: If TDS is deducted in month of June and deposited on 8th of July then you have to pay interest for 2 month i.e. June and July.

Here, provisions of section 201 for Interest on Late deposit of TDS are summarized in tabular format for quick reference and better understanding.

Income Tax Section Nature of Default Interest Interest Period
  Section 201A If a person liable to deduct TDS fails to deduct tax at source, either in whole or in part 1% per month or part of month   From the date on which the tax was deductible to the date of actual deduction  
  After deduction of tax at source, if a person fails to deposit TDS, either in whole or in part 1.5% per month or part of month   From the date of deduction to the date of actual payment  

How to make Payment of TDS?

TDS can be deposited online electronically or through the designated bank branches.

The payer (Deductor) can pay TDS through tax Challan No. / ITNS 281, manually or online by logging into OLTAS. However, payment of TDS Online or e-payment is mandatory for the following Deductor:

  • Company Taxpayer
  • Taxpayer for whom tax audit is compulsory.
  • Taxpayer / Deductor can opt for online TDS payment option voluntarily also.
  •  Online payment options ensure for faster processing of Challans

Online TDS Payment Link

Pay TDS Online or TDS e-Payment

Important Note:

When making an electronic payment, keep in mind that any payment made after 8 PM will be processed on next working day only. In this case, payment consideration will be done for the next day and payer will be liable to pay interest on late payment.

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