TDS Payment Due Date, Penalty & Process to deposit TDS
Here’s a quick guide on Due date of TDS Payment, Challan and process to deposit the tds online. Also know the consequences and penalty for late payment of TDS.
Tax Deducted at Source, commonly known as TDS is one of the major source of revenue of Government. Direct Tax Laws 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.
|Due Date |
for Govt. Deductor
|Due Date |
for Other Deductor
|April||7th May||7th May|
|May||7th June||7th June|
|June||7th July||7th July|
|July||7th August||7th August|
|August||7the September||7the September|
|September||7th October||7th October|
|October||7th November||7th November|
|November||7th December||7th December|
|December||7th January||7th January|
|January||7th February||7th February|
|February||7th March||7th March|
|March||7th April||30th April|
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.
Interest on Late payment of TDS
Interest is chargeable on non deduction/short deduction or late deposit of TDS.
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.
Section 201A of the Income Tax Act
Here, provisions of section 201 for Interest on Late deposit of TDS are summarized in tabular format for quick reference and better understanding.
|Nature of Default||Interest||Interest Period|
|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
Challan No. /ITNS 281 : Payment of TDS/TCS by Company or Non Company Deductee
Online TDS Payment Link
Pay TDS Online or TDS e-Payment
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.