Question: What Is The Penalty For Not Paying TDS On Time?

What is the penalty for late payment of TDS?

TDS interest for late payment Under Section 201(1A) for late deposit of TDS after deduction, interest payment should be at a rate of 1.5% per month.

The calculation of interest is on a monthly basis and not on the number of days i.e.

part of a month is considered as a full month..

What happens if TDS is deducted but not deposited?

As it may happen, your employer may have deducted the tax from your salary but has failed to deposit the same against your PAN with the government. If your employer is not paying heed to your complaints regarding the same, then you can approach the income tax department.

What if TDS due date falls on Sunday?

A common question asked is what is the last date of payment when above mentioned due date falls on a Sunday or public holiday. In this case, the next working day can be considered as the last day of payment of Tax Deducted at Source.

How is TDS penalty calculated?

Due Date of TDS Return :Delay in filing TDS Return (In Days) :Late fee for fiing TDS Return u/s 234E amounting to Rs 200 per day (maximum to TDS amount) :Penalty u/s 271H is applicable which is Rs 10,000 (may be exteded to Rs 1,00,000) :

Is TDS mandatory for salary?

Under Section 192 of the Income Tax Act, every employer who is paying a salary income to his employee is required to deduct TDS from the salary income if it exceeds the basic exemption limit. … Since TDS deduction is compulsory, it is important to understand the rate of such deduction and how such deduction happens.

What is the rule of TDS deduction?

TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.

What is the due date for TDS payment for March 2020?

TDS payment due date every quarterMonth of DeductionQuarter endingDue Date for filing of Return from the financial year 2020-21 for All DeductorsDecember31st December31st JanJanuary31st March31st May (31st July for Q4 of FY 2019-20 ending March 2020)FebruaryMarch9 more rows•Sep 29, 2020

What is the due date for TDS payment?

Due date for payment of TDS. Generally, the due date for TDS payment is always the 7th day of the next month, with a few exceptions. For example, if an organization wants to pay TDS for the month of July, then the due date for the same will be the 7th of August.

What happens if we don’t pay TDS?

All companies, irrespective of government or private, must bear a penalty of Rs. 200/day, under section 234E, for the delay in filing TDS or TCS returns after the specified due date. However, such a penalty will not exceed the amount of TDS for which the statement was required to be filed.

Is TDS payment date extended?

The date for filing TDS return for February and March have been extended to July 31, 2020. … The March 31 ordinance has enabled provision empowering the central government to further extend due dates to beyond June 30, 2020. The due date for filing ITR for FY2019-20 has already been extended till November 30, 2020.

How can I pay TDS late?

Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available. Download the Conso File from Traces portal. In case of payment towards late filing fee, please Tag the challan towards the payment, in the “Fee” column” using RPU Ver.

Can we file TDS return after due date?

Failure to file your TDS returns within the due date will mean that you will be subject to a late filing fee of Rs. 200 per day. The fee will be charged for every day after the due date, until the date on which your return is filed. However, the maximum fees that you will have to pay will be limited to the TDS amount.