TDS Payment Due Date
|Month||Due Date of TDS Payment|
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).
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