Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) form the backbone of income tax collection in India, acting as a proactive measure to gather taxes at the source of income. As we venture into the Financial Year (FY) 2024-25, it’s pivotal for taxpayers to stay updated with the due dates and understand the repercussions of delays to avoid unnecessary penalties.
Understanding the Due Dates
For FY 2024-25 | AY 2025-26, it’s crucial to mark your calendar with the specific deadlines for TDS and TCS submissions to ensure timely compliance.
Interest Implications for Delays
Non-Deduction or Late Deduction of TDS/TCS:
- An interest of 1% per month applies from the time the tax was supposed to be deducted until the deduction is made.
Non-Payment After Deduction/Collection:
- A 1.5% per month interest rate applies if tax deducted/collected isn’t paid to the government on time.
Example for Clarity: Suppose a payment of ₹45,000 is made to a professional on April 6th without TDS. The TDS is later deducted on May 3rd but only paid to the government on August 10th. Interest calculations for non-deduction and late payment will follow accordingly.
Late Filing Fees and Penalties
Late filing of TDS/TCS returns can lead to a daily penalty of INR 200 under Section 234E, subject to certain caps. Furthermore, the Income Tax Department may impose additional penalties under Section 271H for non-compliance.
Budget Updates and Their Implications
The 2023 budget introduced several key updates affecting TDS/TCS regulations:
- Section 194BA: Introduction of TDS on online gaming earnings.
- Section 196A: Benefits for non-residents on mutual fund earnings with a Tax Residency Certificate.
- Section 192A: A reduced TDS rate on PF withdrawals for employees without PAN.
Essential Forms for TDS Returns
- Forms 24Q, 26Q, and 27Q are essential for quarterly TDS statement filings, each catering to different types of income.
Submission Deadlines
The deadlines for depositing TDS and filing returns vary by quarter, with specific dates outlined for the efficient planning of your tax-related responsibilities.
Penalty for Late Filings
Late submissions can attract hefty penalties, including a late filing fee (Sec 234E) and a potential penalty (Sec 271H), emphasizing the importance of timely compliance.
Interest on Late Deposit of TDS
Interest on late TDS deposits is calculated at 1.5% per month, showcasing the cost of delays in fulfilling tax obligations.
FAQs to Guide You
Is TDS Paid Monthly?
For non-government deductors, TDS must be deposited by the 7th of the following month, with March deductions having an extended deadline till April 30th.
Can I File a TDS Return After the Due Date?
Yes, but late filing incurs a penalty of INR 200 per day under Section 234E, emphasizing the importance of punctuality in tax submissions.
This comprehensive guide aims to simplify the intricacies of TDS and TCS regulations for FY 2024-25, ensuring taxpayers can navigate their obligations with ease and accuracy. Stay ahead by marking the crucial dates and understanding the financial implications of delays, ensuring a smoother tax filing process.