The government of india has incorporated a system under income tax law at the point of generation of income which called tax deducted at source (TDS). This provisions of income tax are applicable on salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc.
In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the Government.
The government of india prescribed TDS rate under income tax act.
TDS Return and Due date
|Quarter||Quarter Period||Last date of filing TDS returns|
|1st Quarter||From 1st April 2018 to 30th June 2018||31st July 2018|
|2nd Quarter||From 1st July 2018 to 30th September 2018||31st October 2018|
|3rd Quarter||From 1st October 2018 to 31st December 2018||31st January 2019|
|4th Quarter||From 1st January 2019 to 31st March 2019||31st May 2019|
Forms of TDS filing
|Type of TDS Return Forms||Particulars of the TDS Return Forms|
|Form 24Q||Statement for tax deducted at source from salaries|
|Form 26Q||Statement for tax deducted at source on all payments other than salaries.|
|Form 27Q||Statement for tax deduction on income received from interest, dividends, or any other sum payable to non residents.|
|Form 27EQ||Statement of collection of tax at source.|
Penalty for 26Q
|E-filing Date||Total Income below Rs. 5,00,000||Total Income above Rs. 5,00,000|
|Upto 31st Aug 2018||Rs.0||Rs.0|
|Between 1st Sep and 31st Dec 2018||Rs.1000||Rs.5000|
|Between 1st Jan and 31st march 2019||Rs. 10000||Rs. 10000|
Penalty (Sec 234E)
Deductor will be liable to pay the way of fee Rs.200 per day till the failure to pay TDS continues. However, the penalty should not exceed the amount of TDS for which statement was required to be filed.
2. Penalty (Sec 271H)
Assessing officer may direct a person who fails to file the statement of TDS within due date to pay penalty minimum of Rs.10,000 which may be extended to Rs.1,00,000.
3. The penalty under this section is in addition to the penalty u/s 234E.
4. This section will also cover the cases of incorrect filing of TDS return.
No penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if the following conditions are satisfied:
- The tax deducted/collected at source is paid to the credit of the Government.
- Late filing fees and interest (if any) is paid to the credit of the Government.
- The TDS/TCS return is filed before the expiry of a period of one year from the due date specified in this behalf.
|Section||Nature of Default||Interest subject to TDS/TCS amount||Period for which interest is to be paid|
|201A||Non deduction of tax at source, either in whole or in part||1% per month||From the date on which tax deductable to the date on which tax is actually deducted|
|After deduction of tax, non payment of tax either in whole or in part||1.5% per month||From the date of deduction to the date of payment|