Stay on Top of TDS Return Due Dates and Payment Deadlines for FY 2024-25

Tax Deducted at Source (TDS) is a crucial mechanism employed by the government to maintain timely collection of taxes and prevent tax evasion. For businesses and individuals responsible for deducting TDS, it is essential to be aware of the due dates for TDS payments and returns to avoid penalties and legal complications. In this blog, we will provide an overview of the TDS return due dates and payment deadlines for the financial year 2024-25, along with details on penalties for late payments. Whether you are a taxpayer or a tax professional, staying informed with TaxSpanner can help you manage your TDS obligations efficiently.

Changes in TDS Penalties

In a significant move, Budget 2025 has removed imprisonment provisions for non-payment of TDS and non-filing of returns under Sections 276B and 276BB. This change aims to simplify compliance and reduce the burden on taxpayers. However, it is still crucial to adhere to the due dates and filing requirements to avoid financial penalties.

Forms for Filing TDS Returns

TDS returns must be filed using specific forms, depending on the nature of the transaction. Below are the applicable forms:

For specific cases under Sections 194-IA, 194-IB, and 194M, deductors must furnish a challan-cum-statement in Form 26QB, Form 26QC, and Form 26QD, respectively. These forms should be submitted within 30 days from the end of the month in which TDS is deducted. Note that no separate return is required in these cases.

TDS Payment Due Dates for FY 2024-25

To help you stay compliant, here is a detailed table outlining the due dates for depositing TDS and filing TDS returns for the financial year 2024-25:

For government deductors, TDS via book entry (Treasury Challan) should be deposited on the same day of deduction, except for March, which should be by 7th April.

Penalties for Late Filing of TDS/TCS Returns

Late Filing Fee (Sec 234E)

Under Section 234E, a fee of Rs 200 per day is charged for late furnishing of TDS/TCS statements from the due date until the date of furnishing. The total fee cannot exceed the total amount of tax deductible or collectible. This fee must be paid before submitting the TDS/TCS statements.

Penalty (Sec 271H)

If you fail to file the TDS/TCS statement within the due date, the Assessing Officer may impose a minimum penalty of Rs 10,000, extendable up to Rs 1,00,000. This penalty is in addition to the late filing fee under Section 234E and applies to incorrect filings as well.

No penalty under Section 271H will be levied if:

• The tax deducted/collected at source is paid to the government.
• Late filing fees and interest (if any) are paid to the government.
• The TDS/TCS return is filed before the expiry of one year from the due date.

Interest on Late Deposit of TDS

Interest Calculation

Interest must be paid before filing the TDS return. It is calculated on a monthly basis, with part of a month considered as a full month.

Example

If you deducted TDS of Rs 5,000 on 13th January 2024 and deposited it on 17th May 2024, the interest owed would be:

Interest = Rs 5,000 × 1.5% per month × 5 months = Rs 375

Additional Considerations

Prosecution (Sec 276B)

Previously, failure to pay TDS to the Central Government could result in imprisonment for a term not less than three months but extendable up to seven years, along with a fine. However, with the removal of imprisonment provisions in Budget 2025, the focus is now on financial penalties.

COVID-19 Lockdown Penalties Waiver

During the COVID-19 lockdown in 2020, the department waived all penalty provisions for the period between 20th March 2020 to 30th June 2020. In normal circumstances, a penalty equal to the amount that was failed to be deducted/collected or remitted may be imposed.

In conclusion, managing TDS obligations can be complex, but with the right tools and information, compliance becomes manageable. TaxSpanner is committed to providing you with the latest updates and resources to help you stay on top of your TDS return due dates and payment deadlines for FY 2024-25. By adhering to the specified due dates and understanding the penalties for late payments, you can avoid unnecessary financial burdens and ensure smooth tax compliance. Stay informed, stay compliant, and let TaxSpanner be your trusted partner in tax management.