50 Lakhs in case of profession in previous year. Deductor will have to pay INR 200 until TDS Return filing is done. Interest on late payment of TDS: Changes made as per Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24th March 2020: For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum (i.e. Interest on late payment of TDS: Assessee is liable to pay Interest @ 1.5% for every month or part of the month on the amount of TDS from the due deduction date till the actual date of deduction. Last Date of Filing. 31st May Interest (if you do not deposit TDS amount in time) font-size: 14px; Penalty And Interest On Late Payment Of TDS, Learn more about Investment in NPS and Tax Saving, Merits and Demerits of Goods and Services Tax, NPS Open National Pension System (NPS) Account Online Overview, Late filing fee ( in case you have not filed TDS Returns by the correct date), Interest (if you do not deposit TDS amount in time), Penalty (if TDS is not filed within a year of the due date), TDS/ TCS to be paid to the credit of the Government, Late TDS return filing fees and interest (if any) to be paid to the credit of the Government, TDS/TCS return to be filed before the expiry of a one-year period from the specified due date. However, the penalty should not exceed the TDS amount for which statement filing was required. TDS Return is a statement submitted by deductors to the Income Tax (IT) department on a quarterly basis. August Sorry, your blog cannot share posts by email. February Applicable from 14 th may 2020 and up to 31 st march 2021. 7th August Below-listed are the penalties applicable in case of late payment of TDS: Provision of Interest on late payment of TDS or on late deduction of TDS is defined in the Section 201(1) of Income Tax Act, 1996: Interest on late deduction of TDS: Assessee is liable to pay interest @1% for every month or part of the month on the amount of TDS from the due deduction date till the actual date of deduction. Higher of Rate in force or Double Taxation Avoidance Act rate, 196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend). It is crucial for an employer to file quarterly TDS returns for tax deducted from salaries. 31st March from 1.4.2020), 194K- Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company. 7th April 200 per day for each day during which the failure continues. 30th April All Rights Reserved. Deductor list-style: disc; Due Dates for TDS Return for Q1 of FY 2020-21. The due date of filing the TDS return for the last quarter of the year 2020-21 i.e. 194O- Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. In case an individual fails to pay to the credit of the Central Government Important update- Due to COVID 19 pandemic, for due dates falling between 20 March 2020 to 29 June 2020 the reduced interest rate of 9% per annum (0.75% per month) will be charged for this period. The TCS and TDS Rate for Fy 2020-21 is reduced by 25% for the non-salaried defined payments made to residents for the period of 14th May, 2020 to March 31st, 2021. Interest on late deduction of TDS: Assessee is liable to pay interest @1% for every month or part of the month on the amount of TDS from the due deduction date till the actual date of deduction. 3. 7th July 31st December One of the announcements was related to payment of taxes including payment of TDS.In was announced that for delayed payments of advance tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum ( i.e. 20 lakhs during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office. Deductor is a person who is liable to deduct TDS before making payment to a deducted. Pay Tax Online. In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.. Interest @ 1.5% is liable to be paid from the date on which the TDS amount was deducted and not from the date the TDS payment … Quarter Period. The penalty under this section is in addition to the late filing fee under Section 234E. Faceless Compliance TM. TDS is Tax Deducted at Source. Securities. 7th March Honorable Finance Minister has stated in the press release that tax collected at source rate and the TDS rates for all ‘non-salaried’ payment to residents will be concentrated and reduced by 25 % of the specified rates for the outstanding period of Financial Year 2020-21. Penalty Also, for late payment Interest at the rate of 1.5 % per month or part of the month on amount of TDS from the date of tax was deducted till the date such tax is paid shall be charged. Provision of Interest on late payment of TDS or on late deduction of TDS is defined in the Section 201(1) of Income Tax Act, 1996: Every TDS rate reduced by 25% excluding Winning from lottery and horse race (sec 194b/bb) Example- Interest rate -10% (before 14 th may) Interest rate -7.5% (After 14 th may) 4. TDS payment due date every quarter Late Fees/Interest 3.1 Delay in the deposition of Provident Fund: Interest ; The person who fails to complete the payment within the given deadline shall be responsible for paying 12% per year interest for each day he has delayed. July Fees for default in filing of TDS/ TCS return: Fees is payable at Rs. For Other Deductor Any omission or misstatement of information may attract notice from the Income Tax Authorities. 1. TDS/TCS return to be filed before the expiry of a one-year period from the specified due date 30th September May Below table provides simplified view of all the payments where TDS is applicable on payment made to resident. December 7th October 3. In case of delayed TDS/TCS return filing, no penalty under Section 271H will be charged given that an individual fulfils the below-listed conditions: }. (iii) Payment of such Tax or Levy should be paid on or before 30 th June, 2020 (or such other date as the Central Govt may notify). A common question asked is what is the last date of payment when above mentioned … All sums deducted as per the provisions of Chapter XVII-B by a Government office without challan should be deposited on the same day of deduction. January Interest on late payment of TDS: Assessee is liable to pay Interest @ 1.5% for every month or part of the month on the amount of TDS from the … All sums deducted as per the provisions of Chapter XVII-B by a Government office without challan should be deposited on the same day of deduction. Failure to file your TDS returns within the due date will mean that you will be … Through this blog, we will discuss the penalties and interest on late payment of TDS. It needs to be deducted on a specific payment at a prescribed rate by the payer/deductor. 2. Non-salaried payments include interest earned on fixed deposits (FDs), dividend income etc (for various payments, the TDS itself kicks in at different levels). Penalty for Late Filing of TDS Return .box ul li { Late TDS return filing fees and interest (if any) to be paid to the credit of the Government 0.75% per month instead of 1/1.5 per cent per … font-weight: 400; These amendment shall take effect from 1st April 2020. Under the provisions of Chapter XVII-B, he shall be punishable with a minimum imprisonment of 3 months that may extend to seven years along with fine. part of a month is considered as a full month. 31st March 2021 The due date to deposit the TDS for the month of March 2020 was April 30, 2020. 194LB – Income by way of interest from infrastructure debt fund (non-resident). 7th December Due Date for TDS Return Filing from the FY 2020-21 for all Deductors Customer Login Demo Request . October All rights reserved. 7th September Kindly note that a cut in TDS rate does not mean a … 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. 194M – Payment of Commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. Quarter ending April Due dates for TDS payment for FY 2020-21 AY 2021-22 Interest on late payment and Late deduction of TDS: As per section 201 (1A) Interest at the rate of 1% per month or part of the month on amount of TDS from the date of tax was deductible till the date of tax actually deducted shall be charged for late deduction. TDS stands for tax deduction at source while the TCS stands for tax collected at source. TDS Payment Due Dates [AY 2021-22 (FY 2020-21)] Alauddin Mansoori November 7, 2020 Income Tax 0 Comments A deductor is a person who is liable to make payment of specified nature (as mentioned in the above sections) to any other person (deductee) shall deduct TDS and remit the same into the account of the Central Government. It records all TDS related transactions carried out in a quarter. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office. Penalty (if TDS is not filed within a year of the due date) Interest on late payment and Late deduction of TDS: As per section 201 (1A) Interest at the rate of 1% per month or part of the month on amount of TDS from the date of tax was deductible till the date of tax actually deducted shall be charged for late deduction. 1. margin-right: 6px; Due date for TDS Payment through Challan TDS was applicable to individual and HUF if there accounts are liable to Audit in section 44AB in previous year. Under Section 201 (1A) for late deposit of TDS after deduction, interest payment should be at a rate of 1.5% per month. Under the provisions of Chapter XVII-B, he shall be punishable with a minimum imprisonment of 3 months that may extend to seven years along with fine. Delivering quality products, unsurpassed service and premium value; Working together as a team, with high standards of integrity, across borders; Winning in the marketplace; in all aspects of our business. Income Tax Forms | Challans; GST Returns and Utility (2020) Articles. However, a relief in the form of a lower rate of interest was provided for the delay in deposit of TDS for these periods. Any assessee who fails to fill his/her TDS returns before the deadline, he is liable to pay penalty that equals the amount that was failed to be deducted. Any assessee who fails to fill his/her TDS returns before the deadline, he is liable to pay penalty that equals the amount that was failed to be deducted. You can check the section based late fees in the u/s 234 F income tax act along with the eligibility of individual taxpayer. If the above conditions are fulfilled then a person would be liable for the reduced rate of interest at 0.75% p.m or part thereof. Month of Deduction 7th June March No late fee/penalty shall be charged for delay relating to this period. … Accordingly, section 192 – 195 of the act lay down various payments on which the payer has to deduct TDS. Tax deduction from salary does not mean the end of TDS compliance responsibilities for an employer. 200 per day of default will be levied. For eg – TDS deducted on 15th June 2016 is required to paid on or before 30th July 2016. Amid the Corona Virus pandemic, the Income Tax Department has issued a statement to clarify that the TDS Return due date for Q1 and Q2 for FY 2020-21 is 31st of March, 2021. 192A- Premature withdrawal from Employee Provident Fund, 194 – Dividend other than the dividend as referred to in Section 115-O, 194A – Interest other than interest on securities – Others, 40000 (for individual) 50000 (for Senior Citizens only), 40000 (for individual) 50000(for Senior Citizens only), 194C- Payment to Contractor – Single Transaction, 194C-Payment to Contractor – Aggregate During the Financial year, 194C- Contract – Transporter not covered under 44AE, 194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN, 194DA Payment in respect of life insurance policy, 194E – Payment to Non-Resident Sportsmen or Sports Association, 194EE – Payments out of deposits under National Savings Scheme, 194I – Rent – Land and Building – furniture – fittings, 194I – Rent – Plant / Machinery / equipment, 194IA -Transfer of certain immovable property other than agriculture land, 194IC – Payment of Monetary consideration under Joint development agreement, 194J – Professional Fees in all other cases, 194LA – TDS on compensation for compulsory acquisition of immovable Property. color: #595959; The return is not filed till 31st May, 2021 and hence late filing fees under section 234E of Rs. This provision is not applicable to salaried person (Salaried person pay tax as per slab rate) 2. 5 Things you should NOT DO in New Financial Year April 2020, New income tax rules from 1 April 2020 Find out what changes from today, Formation of trust with Charity Commissioner, TDS rate Chart from 14 May 2020 to 31 March 2020, TDS-rates-chart-for-Financial-Year-2020-21-and-Assessment-Year-2021-22, 194J – Professional Fees for technical services (w.e.f. TDS/ TCS to be paid to the credit of the Government Pay Self Assessment Tax; Pay Advance Tax Online; Pay TDS Online; Pay GST Online; Important Links. It is important to first understand the rules regarding TDS payment due date before getting to know the provisions regarding interest to be levied for failure to deduct TDS or delay in TDS payment. For delayed deposit of TDS, interest has been reduced to 9 % from 18% for those where the TDS is due from 20.03.2020 to 29.06.2020. 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