Tax Deduction At Source Returns

Different types of incomes subjected to TDS are salary, interest, dividend, interest on securities, winnings from lottery, horse races, commission and brokerage, rent, fees for professional and technical services, payments to non-residents etc. The tax deducted at source by the payer while paying to the Payee has to be deposited with in the due date to the credit of Central Government and it is deemed to be payment of Income-tax by the recipient at the time of his assessment.

Quarterly statement of deduction of tax

Every person who is responsible for deducting tax has to deliver cause of deduction to the prescribed income tax authority or to the person authorised by such authority through a quarterly statement.

  • In Form No. 24Q in respect of deduction of tax at source under section 192
  • In Form No. 26Q in respect of other cases of deduction of tax at source; and
  • In Form No. 27Q in respect of Payments to Non-Residents,

on or before the 31st July, the 31st October, the 31st January in respect of the first three quarters of the financial year and on or before the 31st May  following the last quarter of the financial year.

Default in payment or Delay in payment

Interest charge U/S 201(A)

If the person responsible for deducting or collecting tax at source does not deduct or collect at source wholly or partly or after deduction or collecting tax fails to pay the same as required by the act, the responsible person is liable for paying simple interest @ 1.5% per month for the whole tenure when TDS was not deducted or remitted. Interest will be calculated for the full month irrespective of the fact that whether it has to be calculated for every month or for only part of the month.

Penalty under U/S 221

If the assessing officer is not satisfied with the reasons for the assessee to have failed to deduct the TDS then the assessee will be liable for penalty, which should not exceed the tax amount.

Penalty for Delay in Furnishing of TDS Statement

Penalty of Rs.100 per day is levied for delay in furnishing of TDS statement. However, no specific penalty is specified for furnishing of incorrect information in the TDS statement.

Penalty for Late Furnishing of TDS Statement from the due date

to provide for levy of fee of Rs.200 per day for late furnishing of TDS statement from the due date of furnishing of TDS statement to the date of furnishing of TDS statement. However, the total amount of fee shall not exceed the total amount of tax.

RMC provides services for identification of the applicable TDS rates for different types of transactions, preparation of challans, preparation and filing of the quarterly TDS Returns, preparation of the TDS Certificates, i.e. Form 16 and Form 16A’s.