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TDS Payment Due Dates and Interest on Late Payment

TDS Payment Due Date

Month Due Date of TDS Payment
April 7th May
May 7th June
June 7th July
July 7th August
August 7th September
September 7th October
October 7th November
November 7th December
December 7th January
January 7th February
February 7th March
March 30th April

The due date for payment in case of TDS on sale of immovable property under section 194IA is 7th of next month including the month of March Notification 39/2013 (Applicable till month of May 2016). The date is extended to 30 days from the end of month beginning from June 2016. For eg – TDS deducted on 15th June 2016 is required to paid on or before 30th July 2016.

These due dates are not applicable for government’s offices or who have any special permission from Assessing Officer.

All corporate assessee and other assessee who are subject to compulsory audit under section 44AB are compulsorily required to use electronic transfer to make TDS payment. TDS is paid by Challan No./ITNS 281. TDS payment link – NSDL. Also read – How to pay TDS/TCS online

A common question asked is what is 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 last day of payment of Tax Deducted at Source.

When you are making electronic payment, keep in mind that payment made after 8 PM is processed on next working day. And if this happens you can’t argue that i had made payment but bank processed it next day so payment is considered to be made the next day and you has to pay interest.

Assessing officer with prior approval from joint commissioner may allow the quarterly payment of tds. In that case last date of payment is 7th of the next month after each quarter and 30th April for the last quarter.

Interest on Late Payment

Interest is chargeable on short payment/late payment of TDS. There can be following scenarios :-

  • When TDS is not deducted
    Interest at the rate of 1% per month or part thereof, for the period from the date on which TDS is deductible/collectible to the date on which TDS/TCS is actually deducted/collected.
  • When TDS is deducted but not paid
    Interest at the rate of 1.5% per month or part thereof, for the period from the date on which TDS is actually deducted/collected to the date on which such TDS/TCS is actually paid.

Calendar month is considered in calculating interest therefore if you delay payment by one day, you have to pay interest for two months. For example, if TDS is deducted in month of July and deposited on 8th of August then you have to pay interest for 2 month i.e. July and August. Total interest payable shall be 3%.

Interest paid on delay in deposit of TDS is not allowed as a expenditure under Income Tax Act.

Notes – Interest on late payment of TDS can be paid before furnishing TDS return or after demand raised by Traces. Such interest can be adjusted from amount remaining in any TDS Challan (under any section).

For Government and who have any special permission from Assessing Officer click here

Income tax department’s official guide on TDS payment last date and interest thereon

Related Pages

tds deposit date

157 comments

  1. Sir, As you said that TDS paid on late depositing of TDS will be allowed as an expense to employer under the head business and profession , but sir if you provide the section under which section it is allowed then it will be easy to understand

  2. Sir, Whether interest paid on late depositing of TDS will be allowed as expenditure under Income Tax Act

  3. Dear sir
    whether TDS payment due date would be extended as Banks will remain closed on both 6th and 7 th of July.
    thank you

    • Rohit Pithisaria

      In the absence of any specific circular for the due date of TDS deposit, in case the original due date falls on public or bank holiday, we can assume the next working day will be the due date. On the safer side I suggest you should assume the previous day as the due date because if the payment is made via Online Banking then this contentions cannot be said valid.

      There is a CBDT Circular for the same issue for the interest u/s 234B and 234C but no specific circular is issued for the interest u/s 201(1A).
      The CBDT Circular No.676 dated 14/01/1994 is as follows:-

      “..if the court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the court or office (or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any installments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961, would not be charged.”

  4. Hello sir

    we have deduct the TDS on various date in April’16 but not paid in 7th May’16 we will pay the TDS on 5th June’16 so how many % interest we’ll pay and and how manny month calculated .

  5. Professional Fees Paid without deducting TDS of Rs.150,000/- in the month of May-2015. But in the month of June Fees payment time deducted Last 150000/- TDS of Rs. 15000. Which date considered for TDS Online Payment Due Date.? Please Guide Us.

  6. RAJESH DEYONDI

    BY WHICH CHALLAN FORM WE DEPOSIT INTREST ON LATE PAYMENS OF TDS IN Q 4 2015-16 PLEASE SEND ME THE CHALAN FORM

  7. Dear Sir, I purchased flat in 2010(>50 lacs) and payment given to builder from June 2013 as per demand. But I have not paid 1% TDS.
    Now how to calculate penalty and late fee to fill form 26qb. Please help.
    e.g. on 13 July – paid 11 lacs to builder
    on 20th Nov 12 lacs paid to builder and so on

    Now how to calculate penalty and late fee for such payments for 1% TDS. Please help.

    • Rohit Pithisaria

      Hello,

      Please read the below article for complete details. Let me know if you still have any other queries.

      Thanks

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TDS CALCULATOR


Now use our TDS INTEREST CALCULATOR for calculating due dates and interest on late deposit of TDS.

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TDS RETURN CALCULATOR for calculating due dates and penalty for late submission of TDS Return.