TDS Return and Payment: Important Due Dates You Should Know

TDS return and payment deadlines are crucial for smooth tax compliance. Missing them can lead to penalties and interest charges. Stay ahead by knowing the important TDS return due dates to avoid unnecessary costs.

Book A Demo



What is TDS Return?

TDS Return is the quarterly statement that needs to be submitted to the Income Tax Department by every deductor detailing the amount of Tax Deducted at Source (TDS) by them for that quarter.

TDS stands for Tax Deducted at Source, which is a system where a person who makes a payment deducts tax at the source of income, such as salary, interest, rent, or commission, before making the payment to the recipient. TDS Return involves reporting made by the deductor regarding the  TDS  deducted, along with basic information about the deductor, the deductee, and the payments made.

Understanding TDS Return and Payment

TDS is the liability of income receivers to pay the income tax. However, in TDS provisions, the government ensures the tax is deducted in advance from the amount paid by the payer. It limits the possibility of tax fraud and helps with better tax collection.

Get a Free Trial –  Best GST Accounting Software For Small Business

The recipient of income gets the amount after the TDS deduction. When filing their income tax return, they include the gross amount (the amount before the TDS deduction) in their income and can claim credit for the TDS already deducted. Under this system, the government is empowered to collect taxes from the source while also facilitating seamless compliance.

TDS Provisions for Individuals and HUF

  1. No TDS Deduction:
    – If the payer is an individual or HUF whose business turnover does not exceed ₹1 crore (or ₹50 lakh for professionals).
  2. TDS on Rent Above ₹50,000/Month:
    – Individuals and HUFs must deduct TDS at 5% on rent exceeding ₹50,000 per month, even if not subject to a tax audit. No TAN is required for such deductions.
  3. TDS by Employers and Banks:
    – Employers deduct TDS based on applicable income tax slab rates.
    – Banks deduct TDS at 10% on interest payments or 20% if the depositor’s PAN is unavailable.

Get a Free Trial –  Best GST Accounting Software For Small Business

For example, ABC Pvt Ltd pays the property owner a monthly office rent of ₹1,00,000. According to TDS provisions, the company must deduct tax at the rate of 10%. As a result, ABC Pvt Ltd deducts ₹10,000 as TDS and pays the remaining ₹90,000 to the property owner.

In this case, the owner receives ₹90,000 as the net amount after the tax deduction at source. While filing their income tax return, the property owner declares the gross rent of ₹1,00,000 as income and claims a credit for the ₹10,000 TDS already deducted by ABC Pvt Ltd. This mechanism ensures that taxes are collected in advance, streamlining the TDS compliance process for both the payer and the recipient.

Important Due Dates for TDS Return and Payment

Adhering to the deadlines for Tax Deducted at Source (TDS) payments and  GST return filings  is essential to comply with Indian tax laws. Below are the relevant TDS return due dates for the Financial Year 2024-25:

TDS Payment Due Dates
  1. For Non-Government Deductors
    – Monthly Payments: The TDS amount must be deposited by the 7th day of the following month.
    – March 2025 Payments: The deadline for depositing TDS for March is 30th April 2025.
  2. For Government Deductors
    – Without Challan: Deposit the TDS amount on the same day as the deduction.
    – With Challan: Deposit the TDS by the 7th day of the next month.
  3. TDS Return Filing Deadlines (for any year)
    – Quarter 1 (April – June): 31st July
    – Quarter 2 (July – September): 31st October
    – Quarter 3 (October – December): 31st January
    – Quarter 4 (January – March): 31st May
  4. Penalties for Non-Compliance
    – Late TDS Payment
    – Interest is charged at 1.5% per month or part thereof, starting from the date of deduction until the date of payment.
  5. Late TDS Return Filing
    – A penalty of ₹200 per day is applicable until the return is filed, subject to the total amount of TDS deducted.

Get a Free Demo –  Best Billing and Invoicing Software

Step-by-Step Guide to Filing TDS Returns

Filing TDS returns online is a straightforward process. Follow these steps:

  1. Visit the Income Tax Website
    Go to incometaxindiaefiling.gov.in.
  2. Log In with TAN Credentials
    Log in with your Tax Deduction and Collection Account Number (TAN) details.
  3. Access the TDS Filing Section
    Click on ‘e-File’ > ‘Income Tax Forms’ > ‘File Income Tax Forms’ from the dashboard.
  4. Select the Relevant Form
    Choose the appropriate TDS form from the available options.
  5. Upload the TDS Form
    Click ‘Let’s Get Started’ and upload the completed TDS form.
  6. Verify Details and Proceed
    Enter the required details and click ‘Proceed to e-Verify’. Validate using the OTP sent to your registered mobile number.
  7. Receive Acknowledgement
    Upon successful filing, you’ll receive a token number as confirmation. In case of rejection, correct the errors and re-file.

Consequences of Missing TDS Deadlines

Failing to meet TDS deadlines can result in the following consequences:

  • Late Filing fee: A delay in filing TDS returns attracts a penalty of ₹200 per day as per Section 234E of the Income Tax Act.
  • Interest Charges: If TDS is deducted but not deposited on time, 1.5% interest per month is applied, calculated from the deduction date to the deposit date.
  • Penalties: As per Section 271H, if TDS returns are not filed within one year from the date of filing, a penalty of ₹10,000 to ₹1,00,000 applies.
  • Disallowance of Expense: TDS not properly deducted or deposited shall result in the disallowance of certain expenses, leading to higher taxable income.
  • Prosecution: Inaction, including imprisonment and penalties, may lead to prosecution.

Explore a Free Demo of –  Best Inventory Management Software For Small Business

Conclusion

Missing TDS deadlines can lead to penalties, interest charges, and legal consequences. To avoid this, ensure timely filing of returns and payments. Consider using reliable accounting software like BUSY to simplify the TDS payment process and maintain compliance.

Madan Murari
Madan Murari
Chartered Accountant
MRN No.: 509164
City: Patna

Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone!

Frequently Asked Questions

  • Can TDS be filed after the TDS return due date?
    Yes, TDS filing is allowed even after the TDS return due date. However, a late fee and interest will be charged for the delay.
  • How many days are required for a TDS return?
    TDS/GST quarterly return due dates fall within 15 to 30 days after the end of each quarter.
  • Can the TDS return be revised after the TDS due date?
    Yes, TDS returns can be revised after the TDS return due date. However, penalties may apply if revisions are made late.
  • How do you check the TDS amount?
    You can check the TDS amount on Form 26AS, which is accessible through the Income Tax Department's e-filing portal.
View all FAQs