{"id":7287,"date":"2018-02-22T15:28:08","date_gmt":"2018-02-22T09:58:08","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=7287"},"modified":"2019-07-31T12:36:47","modified_gmt":"2019-07-31T07:06:47","slug":"tds-penalty-india","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/tds-penalty-india\/","title":{"rendered":"TDS Penalty in India"},"content":{"rendered":"<p>To understand the TDS Penalty and late Fee provisions we have to go through first basic provisions of the TDS E.g. Due date of <a href=\"https:\/\/en.wikipedia.org\/wiki\/TDS\">TDS<\/a> payment, the filing of return etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Duties of the person liable to deduct TDS\/TCS<\/strong><\/h2>\n\n\n\n<ul><li>Must have TAN Number.<\/li><li>Must have TAN Number all documents pertaining to TDS\/TCS.<\/li><li>Deduct TDS\/TCS at the applicable<\/li><li>Pay such amount on the due date or before the due<\/li><li>Must file periodically statement i.e. <a href=\"https:\/\/enterslice.com\/tds-return\"><strong>TDS Return<\/strong><\/a>.<\/li><li>Must issue TDS\/TCS certificate in respect of TDS deducted\/collected.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Taxable Event of TDS<\/strong><\/h2>\n\n\n\n<p>At the time of payment getting due or actual payment <strong>(whichever is earlier)<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Interest on failure to deduct TDS &amp; Late payment of TDS <\/strong><\/h2>\n\n\n\n<p><strong>&nbsp;<\/strong>As per Section 201 of <a href=\"https:\/\/en.wikipedia.org\/wiki\/The_Income-tax_Act,_1961\">the income tax act 1961<\/a> if a person who is liable to deduct TDS&nbsp; Penalty but failure to deduct TDS or after so deducted fails to pay, the whole or part of the tax credit to the government then such person shall be liable to pay simple interest as given below:-<\/p>\n\n\n\n<ul><li>Interest shall be levied @1% for every month or part of the month on the number of TDS which has not been deducted. Such interest shall be calculated from the date from which TDS&nbsp;Penalty should have been deducted till the date of TDS deducted.<\/li><li>Interest shall be levied @ 1.5% for every month or part of the month from the date on which such amount of TDS deducted till the date such amount remitted to the govt.<\/li><\/ul>\n\n\n\n<p>E.g. XYZ Ltd. A paid fee of Rs. 1, 00,000\/- on 23<sup>rd <\/sup>July to Mr. Sanjay Sharma u\/s 194J for the month July.<\/p>\n\n\n\n<p>However, the TDS on such amount could not be deducted on time hence the TDS&nbsp;Penalty is deducted on 23<sup>rd<\/sup> August and deposited to 15<sup>th<\/sup> sept<\/p>\n\n\n\n<p>Ans. 1.TDS to be deducted @10% i.e. 10,000\/-<\/p>\n\n\n\n<ol><li>When the TDS to be deducted<\/li><\/ol>\n\n\n\n<p>At the time of payment getting due (23<sup>rd<\/sup> July 20XX, Assumption)<strong> OR<\/strong><\/p>\n\n\n\n<p>Actual payment (23<sup>rd<\/sup> July 20XX)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>(Whichever is earlier?)<\/strong><\/h2>\n\n\n\n<ol><li>TDS Deducted on 23<sup>rd<\/sup> August hence penalty shall be levied @1% for the month of July&amp; August.<\/li><li>However, the TDS Deducted on 23<sup>rd<\/sup> August and Deposited with Govt. at 23<sup>rd<\/sup> Sept. hence the interest shall be charged @1.5% for the month of August &amp; Sept.<\/li><li>Further, the TDS penalty under section 234E shall be also levied if return is not filed within time (i.e. 200 per day)<\/li><\/ol>\n\n\n\n<p><\/p><h3><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/hindu-undivided-family\/\">How HUF can help you in Saving Income Tax?<\/a><\/mark><\/h3>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Due date of Filling TDS\/TCS Return<\/strong><\/h2>\n\n\n\n<p><strong>Financial Year 2017-18<\/strong><\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td><strong>Quarter Ending<\/strong><\/td><td><strong>Due date for filing of TDS return(Both&nbsp; for government and other DDeductor<\/strong><\/td><td><strong>Due date for TCS Return<\/strong><\/td><\/tr><tr><td><strong>30\/June\/2017<\/strong><\/td><td><strong>31<sup>st<\/sup> July 2017<\/strong><\/td><td><strong>15<sup>th<\/sup> July 2017<\/strong><\/td><\/tr><tr><td><strong>30\/Sept\/2017<\/strong><\/td><td><strong>31<sup>st<\/sup> Oct 2017<\/strong><\/td><td><strong>15<sup>th<\/sup> Oct 2017<\/strong><\/td><\/tr><tr><td><strong>31\/Dec\/2017<\/strong><\/td><td><strong>31<sup>st<\/sup> Jan 2018<\/strong><\/td><td><strong>15<sup>th<\/sup> Jan 2018<\/strong><\/td><\/tr><tr><td><strong>31\/March\/2018<\/strong><\/td><td><strong>15<sup>th<\/sup> May 2018<\/strong><\/td><td><strong>15<sup>th<\/sup> may 2018<\/strong><\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Financial Year 2018-19<\/strong><\/h2>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td><strong>Quarter Ending<\/strong><\/td><td><strong>Due date for filing of TDS return(Both&nbsp; for government and other Deductor)<\/strong><\/td><td><strong>Due date for TCS Return<\/strong><\/td><\/tr><tr><td><strong>30\/June\/2018<\/strong><\/td><td><strong>31<sup>st<\/sup> July 2018<\/strong><\/td><td><strong>15<sup>th<\/sup> July 2018<\/strong><\/td><\/tr><tr><td><strong>30\/Sept\/2018<\/strong><\/td><td><strong>31<sup>st<\/sup> Oct 2018<\/strong><\/td><td><strong>15<sup>th<\/sup> Oct 2018<\/strong><\/td><\/tr><tr><td><strong>31\/Dec\/2018<\/strong><\/td><td><strong>31<sup>st<\/sup> Jan 2019<\/strong><\/td><td><strong>15<sup>th<\/sup> Jan 2019<\/strong><\/td><\/tr><tr><td><strong>31\/March\/2019<\/strong><\/td><td><strong>15<sup>th<\/sup> May 2019<\/strong><\/td><td><strong>15<sup>th<\/sup> may 2019<\/strong><\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Provision for TDS Penalty or late filing of Fee<\/strong><\/h2>\n\n\n\n<p>A person who fails to file TDS\/TCS return on due Date liable to pay penalty u\/s 234E &amp; 271H<\/p>\n\n\n\n<p><strong>As per section 234E of the Income Tax Act 1961 <\/strong>where a person fails to file TDS\/TCS return then such person shall along with return shall liable to submit the details to pay &ldquo;<strong>Late Fee&rdquo; <\/strong>of Rs.200 per day till the default continue. Such amount shall be calculated from the due date of the return.<\/p>\n\n\n\n<p>However, the amount of late fee shall not exceed the amount of TDS.<\/p>\n\n\n\n<p><strong>As per section 271H of the Income Tax Act, 1961 <\/strong>where a person fails to file TDS\/TCS Return or File incorrect TDS\/TCS return shall be liable to pay following penalty:-<\/p>\n\n\n\n<p><strong>Minimum Rs. 10,000\/-<\/strong><\/p>\n\n\n\n<p><strong>Maximum Rs. 1, 00,000\/-<\/strong><\/p>\n\n\n\n<p>The penalty under section 271H is in addition to the <strong>&ldquo;Late Fee&rdquo;<\/strong> u\/s 234E<\/p>\n\n\n\n<p>However no penalty u\/s 271H can be levied if the following conditions are satisfied:-<\/p>\n\n\n\n<ul><li>The TDS\/TCS amount paid to the Govt.<\/li><li>The late filing fee and interest (if any) are paid to the Govt.<\/li><li>The Return filled before the expiry of one year from due date.<\/li><\/ul>\n\n\n\n<p><\/p><h3><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/income-tax-for-non-resident-indians\/\">Are you an NRI? Know the Tax Rules<\/a><\/mark><\/h3>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Waiving off the Penalty<\/strong><\/h2>\n\n\n\n<ul><li>Under section 271A(4) the principal commissioner of income tax or commissioner of income tax has the power to waive off or reduce the penalty levied under the Income Tax Act.<\/li><\/ul>\n\n\n\n<p>However, the penalty under the section can only be waived off if condition u\/s 273A (4) is satisfied.<\/p>\n\n\n\n<ul><li>Apart from relaxation provided under section 271A(4) there is another section in which immunity has been provided on the penalty levied under section 271H<\/li><\/ul>\n\n\n\n<p>However such immunity is only available if there was reasonable cause for such failure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>To understand the TDS Penalty and late Fee provisions we have to go through first basic provisions of the TDS E.g. Due date of TDS payment, the filing of return etc. Duties of the person liable to deduct TDS\/TCS Must have TAN Number. Must have TAN Number all documents pertaining to TDS\/TCS. Deduct TDS\/TCS at [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":7291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1473,2435],"tags":[961,1646,1648],"acf":{"service_id":"90"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>TDS Penalty in India, Income Tax Act 1961- Enterslice<\/title>\n<meta name=\"description\" content=\"TDS Penalty to understands the TDS late Fee and Penalty provisions we have to go through first basic provisions of the TDS E.g. Due date of TDS payment, the filing of return etc.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/tds-penalty-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TDS Penalty in India, Income Tax Act 1961- Enterslice\" \/>\n<meta property=\"og:description\" content=\"TDS Penalty to understands the TDS late Fee and Penalty provisions we have to go through first basic provisions of the TDS E.g. Due date of TDS payment, the filing of return etc.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/tds-penalty-india\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-22T09:58:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-07-31T07:06:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/02\/TDS-Penalty.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":650,"readingTime":3,"nextPost":{"id":7304,"slug":"prosecution-punishment-income-tax"},"prevPost":{"id":7281,"slug":"intellectual-property-assignment-agreement"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/02\/TDS-Penalty.jpeg","postTerms":"Income Tax","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/7287"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=7287"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/7287\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/7291"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=7287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=7287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=7287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}