TDS Due Dates of FY 2024-25 For Return Filing

TDS is a method used by the government to collect taxes directly at the source of income. This process involves the payer, such as your employer, deducting a portion of your income and depositing it directly with the government on your behalf.

Exploring the complexities of taxes can often lead to confusion and concern. Tax Deducted at Source (TDS) is a fundamental component of India’s efficient tax collection system. This blog will help you understand the due dates for TDS return filing for the financial year 2024-25.

What are the TDS Return Due Dates for FY 2024-2025?

Taxpayers must know the due dates for filing TDS returns to avoid any last-minute hassle and penalties. Here are the TDS return filing due dates for FY 2024-25:

Process for Filling TDS Return for the FY 2024-25

Here is a step-by-step guide on how to fill and submit your TDS return for the financial year 2024-25 (Assessment Year 2025-26):

Gather Information

• Ensure you have a valid Tax Deduction and Collection Account Number (TAN).
• Collect all the challan details (payment slips) for the TDS deposited throughout the quarter.
• Organize your TDS records, including payee PAN details, nature of payments, and TDS deducted amounts.

Choose the Right Form

• Use Form 24Q for salary payments.
• Use Form 26Q for other payments like interest, professional fees, rent etc. (domestic transactions).
• Use Form 27Q for payments to non-residents/foreign companies (except those covered by Form 26QB).

Online Filing Process

• Access the Income Tax Department e-filing portal.
• Enter your user ID, password, and captcha code to log in.
• Navigate to the TDS section on the portal.
• Select the “Upload TDS” option and choose the appropriate form (24Q, 26Q, or 27Q) filled with your TDS data.
• The portal typically allows uploading the data in a specific format. You may need to download the format from the website and populate it with your information.
• The portal may prompt you to validate certain details in the uploaded file. Review and confirm the details.
• Once validated, submit the TDS return electronically. You might also be able to sign it digitally.

Forms for Filing TDS Returns

TDS forms serve a specific purpose and must be filed according to the type of transaction and the nature of the deductee. These forms ensure that TDS and TCS are reported accurately to the tax authorities. Here is a brief overview of each form:

Form 24Q

Form 24Q is used to file TDS returns on salaries. Employers must file this form quarterly to report the TDS deducted from employee salaries. Salaried employees fill out this form quarterly, including information such as the TDS deducted, the employees’ PAN, and other relevant details.

Form 27Q

Form 27Q is used for filing TDS returns on payments other than salaries to non-resident Indians (NRIs) and foreigners. This includes interest, dividends, or any other sum liable to TDS. This form includes the details of the payment made, TDS deducted, and the deductee’s PAN.

Form 27EQ

Form 27EQ files TCS (Tax Collected at Source) returns. Businesses that collect tax at source on certain specified transactions need to file this form quarterly. This form has the details of the seller-buyer, the amount received, the TCS collected, and the PAN of both parties.

Form 26Q

Form 26Q is used for filing TDS returns on all payments other than salaries. This includes payments like interest, commission, brokerage, and professional fees. The deductor is required to file it quarterly.

What are the Due Dates for Depositing TDS Deducting?

The tax deductor must deposit the TDS with the government within the given time frame, as per Section 200 of the Income Tax Act 1961. In accordance with existing income tax regulations, the tax deductor must deposit the tax with the government on the seventh day or before the TDS return due date of the subsequent month.

The government and other deductors have varying due dates for taxes deductible in March. The government has until April 7th to deposit any taxes withheld, and all other deductor taxes must be deposited by April 30th.

What are the Penalties for Late Payment of TDS?

The penalties will apply if TDS returns are filed beyond the TDS payment due date or if there are inaccuracies in the return forms:

Provision 234E Penalty

The deductor shall be penalized ₹200 every day till TDS is paid under this section of the Income Tax Act, but the penalty sum cannot exceed the TDS amount.

Penalty Per Section 271H

The Assessing Officer may order a person who fails to file a TDS statement by the due date to pay a penalty of at least ₹10,000, which may be increased to ₹1,000,000. This fine is in addition to the late filing due date imposed as per section 234E. This section will also discuss circumstances when TDS returns have been filed incorrectly.

Interest Rates on Late Deposits of TDS

Section 201(1A)(I) and (II), deal with the interest rates applicable for late deposits of TDS (Tax Deducted at Source). Here is a breakdown of interest rates on late deposits of TDS:

Sec 201(1A) (I)

A penalty interest of 1% per month applies from when the tax should have been deducted to when it’s deducted.

Sec 201(1A) (II)

The deducted TDS amount is subject to an interest rate of 1.5% per month from the date of deduction to the date it is deposited.

Prosecution (Sec 276B)

Section 276B of the Income Tax Act, 1961, deals with the consequences of failing to fulfill your TDS (Tax Deducted at Source) obligations. Offense and penalties under sec 276B:

Offenses Under Sec 276B

• Wilful attempt to evade tax: This includes deliberately not deducting TDS at source or deducting less than the required amount.
• Failure to furnish return of income: If you are a deductor (someone responsible for deducting TDS), and you don’t file the TDS return by the due date, you can be prosecuted under this section.
• Filing false income tax returns: Providing inaccurate information in the TDS return can also be considered an offense.

Penalty for Offenses under Sec 276B

• Imprisonment: The punishment can range from 3 months to 7 years of rigorous imprisonment.
• Fine: You may also be liable to pay a fine and imprisonment. The amount of the fine is determined by the court.

Types of Challan Statuses in TDS/TCS Statement

The status of your challan (tax payment slip) in a TDS/TCS statement indicates whether the deposited TDS/TCS has been successfully credited to your account. Here are some common challan statuses you might encounter:

• In Process: This indicates the bank has received your challan and it’s undergoing initial processing.
• Queued for Validation: The challan information is being verified against your TDS/TCS return details.
• Matched: This is the ideal status, signifying the challan amount matches the TDS/TCS deducted and has been credited to your account.
• Partially Matched: This occurs when the challan amount partially covers the TDS/TCS liability. You might need to deposit additional funds.
• Mismatch: There’s a discrepancy between the challan amount and the TDS/TCS deducted. This could be due to errors in challan details or return filing.
• Payment Failed: The challan payment could not be processed due to insufficient funds or bank issues. You will need to re-initiate the payment.
• Deposited but not Claimed: The challan amount is deposited but not yet linked to your TDS/TCS return. You might need to rectify your return to claim the deposited amount.

What Payments are Subject to TDS?

Now that you know the types of challan statuses in the TDS/TCS statement, let us have a look at the applicable range of payments under TDS, including:

• Salaries and wages
• Interest income from banks and fixed deposits
• Rent income
• Professional fees
• Commission income
• Sale of property

How is TDS Deducted, and What are its Benefits for Taxpayers?

The rate at which TDS is deducted depends on the payment type and the deductee’s tax bracket. The deductor is responsible for deducting the tax at the correct rate and depositing it with the government within the prescribed timeframe.

Some of the advantages of TDS are:

• Reduces tax burden: By paying tax in installments throughout the year, TDS helps ease the financial burden on taxpayers, especially salaried individuals.
• Prevents tax evasion: TDS makes it difficult for taxpayers to evade taxes, as the tax is deducted at the source.
• Simplifies tax filing: As the tax has already been deducted at the source, taxpayers have less paperwork to deal with when filing their income tax returns.

Key Takeaways

• TDS is a crucial part of India’s tax collection system. It ensures timely tax payments and simplifies taxpayers’ tax obligations.
• TDS involves the payer (like an employer) deducting tax from the income at the source and depositing it with the government.
• The return filing due dates are 31 July, 31 October, 31 January, and 31 May for respective quarters ending in June, September, December, and March.
• For FY 2024-25, salaried individuals and HUFs must file TDS returns by 31 July 2024.

Summing it Up

Understanding TDS and complying with its regulations is crucial for every taxpayer in India. TDS simplifies tax filing, prevents evasion, and eases the financial burden for individuals and businesses. You can explore the process smoothly by staying aware of applicable payments, accurately deducting, and filing returns on time. Utilize the provided due dates and information to stay compliant and reap the tax benefits of this efficient tariff system.

FAQs on TDS return Filing Due Date