TDS Payment: Due Dates and Penalties
But first, let Moneyम्जी explain you those 3 magical words: TDS (Tax Deducted at Source):
Have you observed ‘prasaad’ offered at the place of pilgrimage? They slice out a piece of it before you can take it with you? Later they also give it back to you.
Same principle! You need to slice out a part of the payment you make to specified persons. The sliced amount will then be deposited every month into the god’s account- our government. This sliced payment, credited to deductee’s PAN, will be reflected in TDS return that you have to file every quarter. Hence, the person whose amount you deducted will be able to adjust it against tax payment that he will have to make to the government. Simple!
TDS return is to be filed by the assessee who had deducted the TDS. Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited (tax audit is mandatory for the individuals with a turnover of more than Rs 1 crore from business or Rs 50 Lakh from a profession or a person opting in presumptive income scheme and declaring income less than prescribed limit).
TDS Payment: Due Date
For non government assessee:
| S. No | Particulars | Due Date |
| 1. | Tax Deducted every month, except March | 7th of next month |
| 2. | Tax Deducted in March | 30th April |
All the corporate assesses and those covered under Tax Audit under section 44AB of the Income Tax Act should deposit TDS online mandatorily. Others can also deepoosiit the same with banks.
Let Moneyम्जी tell you another secret. You can pay TDS quarterly also, if Assessing Officer, with prior approval of the Joint Commissioner, permits the same. In that case, TDS due dates are:
| S. No | Quarter ends on | Due Date |
| 1. | 30th June | 7th July |
| 2. | 30th September | 7th October |
| 3. | 31st December | 7th January |
| 4. | 31st March | 30th April |
What if I don’t pay TDS?
Well, 1.5% interest per month awaits you then. Also, the interest will be calculated from the month of date of deduction till the date amount is deposited with the government. Pay attention! Date from which amount is deducted, and not the due date.
Example: If you deducted TDS on 20th January and instead of depositing before due date of 7th February, you deposited the same on 15th February, then the interest will be calculated from? The month of January, and not 7th February. Pheww..government is mean if you don’t pay on time.
Ok, I paid TDS every month before due date, now what? File TDS return every quarter. Click here to check due dates for TDS returns and what happens if you don’t file the same.