TDS RETURN UPDATE: The clock is ticking! Ensure all corrections for FY 2007-08 to 2018-19 are submitted before 31st March 2025.
As per amendment in section 200(3) of the Income-tax Act vide Finance Act, (No. 2) 2024, no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the statement referred to in sub-section (3) is required to be delivered.
In view of the above, correction statements pertaining to Financial Year 2007-08 to 2018-19 shall be accepted only up-to 31st March 2025.
Deductors/Collectors and other Stakeholders may kindly take note.
What Are Forms 24Q, 26Q, 27Q, 27EQ, and 27D? these forms is not only essential for tax compliance but also for ensuring that you meet your financial obligations without any hassles or errors.
In this blog, we will delve deep into the significance of each of these forms, their distinct purposes, and how they fit into the broader landscape of Indian taxation.
This quarterly statement proves that the collector has collected and paid the tax to the government, allowing the recipient to claim a tax credit in their Income Tax returns.
Form 27Q
This quarterly statement is for deducting tax from dividends, interest, or other amounts payable to non-resident individuals or foreign corporations.
One can easily download and submit this Form online with the required documents.
The Form is mandatory to be submitted online by government offices and company principal officers.
Online submission is also needed in Form 24Q for audited accounts under Section 44AB of the Income Tax Act, 1961, or when there are 20+ deductee records in a fiscal quarter.
Annexure 1 and II under 24Q must be submitted online.
This TDS return Form is governed by subsection 3 of Section 200 of the Income Tax Act, 1961.
The Form declares various sections and rules such as 193, 194 I, 194 J, 194 LA, 194 C, 194 D, 194 EE, 194 F, 194 G, 194H, 194, 194A, 194BB, and rule 31A.
The Form gives you specific insight into the deductor type, whether government or non-government.
Non-government deductors must provide PAN.
Government deductors must use “PANNOTREQD”.
Form 27Q
27Q is a TDS Return Form used to declare detailed TDS returns by foreigners and NRIs.
Form 27Q reflects quarterly tax deductions under subsection 3 of Section 200 of the Income Tax Act, 1961.
Form 27Q covers income payments to foreigners and NRIs, excluding salary income.
Non-government deductors under Form 27Q TDS must provide PAN details.
Government deductors use “PANNOTREQD” in this form.
In Form 27Q, the deductor category is indicated based on Annexure 1.
It is mandatory to fill all amount columns, noting “0.00” if not applicable.
Form 27EQ
Form 27EQ TDS is for the Tax Collected at Source (TCS) and is filed quarterly.
This Form is governed by Section 206C of the Income Tax Act (ITA) for the respective quarter’s end date.
Step 3:Go for the “Regular” option, which will redirect you to a new page.
Step 4:On this page, select the respective TDS Return Form matching your specific needs and proceed to download it.
Due Dates of Filing the TDS Return Form
The TDS filing due date varies on different quarters in a financial year. The TDS collector has to submit the TDS returns before these due dates to avoid penalties. Here is the TDS filing due date for the financial year 2023-2024.
TDS, or Tax Deducted at Source, is an advance tax deducted from an individual’s income before their salary is credited. The tax collector must file a TDS return before the due date mentioned above. The returns are filed via various TDS return forms like Form 24Q, 26Q, 27Q, 27EQ, and 27D. As discussed above, all the forms are utilised by the tax collector for different purposes. Depending on the nature of your TDS payment, you can fetch the required Form using the steps mentioned above. Make sure to fill out the TDS return form before the deadline to avoid penalties.
Tax deducted at source or TDS is the tax that is collected by the Government of India at the time when a transaction takes place. Here, in this case, the tax is to be deducted at the time the money is credited to the payee’s account or at the time of payment whichever happens earlier.
In this case of salary payment or the life insurance policy, the tax is deducted at the time when the payment is done. The deductor is required to deposit this amount with the Income Tax Department. Through TDS a portion of the tax is paid directly to the Income Tax Department. The Tax is deducted usually over a range of 10%.
What is TAN?
TAN or the Tax Deduction and Collection Number is a mandatory 10 digit alpha number that is to be obtained by all the people who are responsible for deducting tax at source or tax collection at source on behalf of the government. Salaried individuals are not required to obtain TAN or to deduct the tax at the source.
In the case of the proprietorships businesses and other entities are required to deduct tax at the source while making certain payments like the salary, payments to the contractor, payment of rent that is exceeding Rs.2,40,000 per year. IndiaFilings can help in obtaining the TAN registrations.
The entities that have a valid TAN registration have to file the TDS returns quarterly. Our TDS experts can help in computing the TDS payments and file the TDS returns while complying with the TDS regulations.
Eligibility criteria for filing TDS Return
Organisations and employers who have a valid Tax Deduction and Collection Account Number (TAN) can file TDS returns. TDS must be filed for the below-mentioned payments that have been mentioned under the Income Tax Act:
Salary payment
Any gains that have been generated by winning puzzles, lotteries, and similar types of games.
Insurance commission
Any income that has been generated by Income on Securities.
Income that has been generated by winning horse races.
Note: As per Circular 21/2022, the date of furnishing the TDS Statement in Form 26Q for the quarter ended 30th Sept 2022 has been extended to 30th Nov 2022.
Next, the tax deducted at source and the total amount that has been paid must be correctly filled and should be tallied in their respective forms.
The TAN of the organisation that is filing the TDS returns must be mentioned on Form 27A. The verification process becomes difficult if the incorrect TAN is mentioned.
The basic form that is used for filing e-TDS must be used as it would bring consistency. The 7-digit BSR must be entered so that the tallying becomes easy.
Physical TDS returns must be submitted at the TIN-FC. The NSDL manages all TIN-FCs. In case returns are filed online, they can be submitted on the official website of the NSDL TIN. However, a level 2 digital signature must be used by the deductor in case TDS returns are filed online.
In case all the information that have been provided are correct, a token number or provisional receipt will be received. This acknowledgement works as a confirmation that the TDS Returns have been filed. In case the TDS Returns are rejected, a non-acceptance memo along with the reasons for the rejection is issued. In such cases, the TDS Returns must be filed again.
TDS Return Form
What are the different types of TDS Forms?
TDS forms are depending on the income of the deductee or the type of deductees paying taxes. The TDS forms are mentioned below:
Under Section 192 of the Income Tax Act 1961, an employer deducts the TDS while paying the salary to an employee. An employer has to file the Salary TDS returns in Form 24 Q, which needs to be submitted every quarter. The details of the salary that are paid to employees and the TDS deducted from the payment are to be specified in Form 24 Q. In other words, Form 24 Q is the quarterly statement of the payment that is made to the employee and the TDS is deducted that is made by the deductor.
Form 27 Q is a TDS return or a statement that contains the details of the Tax Deducted at Source on payments other than salary made to a Nonresident India and foreigners. Form 27 Q is to be furnished every quarter or before the due date. Form 27 Q contains the details of the payments that are made and the TDS deducted on payments is made to the NRI by the deductor.
After the TDS is deducted by the deductor it is necessary to furnish the TDS Certificate. The deductee can cross-check the tax credit by viewing a valid TDS certificate from TRACES that bears a 7 digit unique certificate number and a TRACES watermark.
In case the deductee loses possession of the certificate he can request to get a duplicate TDS Certificate.
Penalty for failure in filing the TDS returns
If the assessee is failing to file the TDS returns before the due date then there is a penalty of Rs.200 under Section 234 E per day by the assessee until the time the default is continuing.
Non Filing the TDS returns
If the assessee has not filed the return within a year from the date of filing then the returns or if the person has furnished incorrect information then he or she will also be liable for a penalty. The penalty levied is not less than 10,000 and more than Rs. 1,00,000.
Revised TDS Returns
Once the TDS returns are submitted and errors are detected like incorrect challan details or the PAN is not provided or incorrect PAN is provided then the tax amount credit with the government will not be reflected in the Form 16A / Form 26AS. To make sure that the amount is properly credit and reflected in Form 16/ Form 16A / Form 26 AS a revised TDS return has to be filed.
Prerequisites for submission of Revised TDS returns
The revised TDS returns can be filed only when the original TDS return is accepted by the TIN central system. The assessee can check the status of the TIN Central System. The assessee can check the status of the TDS returns that are filed online by providing the required details such as the PAN and the Provisional Receipt Number/ Token number on NSDL.
The revised TDS returns have to be prepared by using the most recent consolidated TDS statement. The certificate can be downloaded from the TRACES website.
Claiming TDS return
TDS Credit can be claimed by the deductor to claim the credit of the TDS the deductee must mention the details of the TDS in his returns of income. The deductee is required to take due care to quote the correct TDS certificate number and the TDS details while filing the returns of income.
Today 31/01/2023 Due Date to file the TDS Statement for Quarter-3 of FY 2022-23 From tomorrow late filing fee u/s 234E Rs.200 per day is applicable (Late fee shall not exceed the amount of TDS)
Usually, if the income earned by you exceeds a specified limit, then tax is deducted by the payer of the income. Once the tax is deducted, then the payer of income is required to deposit the same against your PAN to the government. The payer of the tax, i.e., you or the bank or your employer, is also required to file a TDS return of the tax deducted and deposited.
LATE FILING FEES AND PENALTY FOR FAILURE TO FURNISH/DELAY IN FURNISHING THE TDS/TCS STATEMENTS
He shall obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be) and quote the same in all the documents pertaining to TDS/TCS.
He shall deduct/collect the tax at source at the applicable rate.
He shall pay the tax deducted/collected by him to the credit of the Government.
He shall file the periodic TDS/TCS statements, i.e., TDS/TCS return.
He shall issue the TDS/TCS certificate in respect of tax deducted/collected by him.
Due Dates for filing of TDS/TCS return
The due dates for filing of TDS/TCS return for different quarters of Financial Year 2022- 23 are as follows:
Quarter ending
DuedateforfilingofTDSreturn (Both for Government and other Deductor)
Duedateforfiling of TCS return
30th June 2022
31st July 2022
15th July 2022
30th September 2022
31st October 2022
15th October 2022
31st December 2022
31st January 2023
15th January 2023
31st March 2023
31th May 2023
15th May 2023
Basic provisions
A person who fails to file the TDS/TCS return or does not file the TDS/TCS return by the due dates prescribed in this regard has to pay late filing fees as provided under section 234E and apart from late filing fees he shall be liable to pay penalty under section 271H. In this part you can gain knowledge about the provisions of section 234E and section 271H.
Late filing fees under section 234E
As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.
TDS/TCS return cannot be filed without payment of late filing fees as discussed above. In other words, the late filing fees shall be deposited before filing the TDS return. It should be noted that Rs. 200 per day is not penalty but it is a late filing fee.
Illustration
The quarterly statement of TDS i.e. TDS return for the first quarter of the year 2022-23 is filed by Mr. Kapoor on 4-4-2023. Tax deducted at source during the quarter amounted to Rs. 8,40,000. What will be the amount of late filing fees to be paid by him for delay in filing the TDS return?
**
The due date for filing of TDS return for the first quarter of the year 2022-23 i.e. April 2022 to June 2022 is 31st July, 2022. The return is filed on 4th April, 2023, thus there is a delay of 247 days as computed below:
Particulars
Days
August 2022
31
September 2022
30
October 2022
31
November 2022
30
December 2022
31
January 2023
31
February 2023
28
March 2023
31
April 2023
4
Total
247
From the above computation it can be observed that there is a delay of 247 days. Late filing fees under section 234E will be charged at Rs. 200 per day, thus for 247 days the late filing fees will come to Rs. 49,400.
Illustration
The quarterly statement of TDS i.e. TDS return for the second quarter of the year 2022-23 is filed by Essem Ltd. on 4-4-2023. Tax deducted at source during the quarter amounted to Rs. 8,400. What will be the amount of late filing fees to be paid by the company for delay in filing the TDS return?
The due date of filing the TDS return for the second quarter of the year 2022-23 i.e. July 2022 to September 2022 is 31th October, 2022. The return is filed on 4th April, 2023, thus there is a delay of 155 days as computed below:
Particulars
Days
November 2022
30
December 2022
31
January 2023
31
February 2023
28
March 2023
31
April 2023
4
Total
155
From the above computation it can be observed that there is a delay of 155 days. Late filing fees under section 234E will be charged at Rs. 200 per day, thus for 155 days the late filing fees will come to Rs. 31,000. However, the late filing fees cannot exceed the amount of tax deducted at source. TDS for the quarter is Rs. 8,400 and hence late filing fees shall be Rs. 8,400.
Illustration
The quarterly statement of tax collected at source i.e. TCS return for the first quarter of the year 2022-23 is filed by Mr. Krunal on 4-8-2022. Tax collected at source during the quarter amounted to Rs. 84,000. What will be the amount of late filing fees to be paid by him for delay in filing the TCS return?
**
In case of Non-Government deductor, the due date of filing the TCS return for the first quarter of the year 2022-23 i.e. April 2022 to June 2023 is 15th July, 2022. The return is filed on 4th August, 2022, thus there is a delay of 20 days as computed below:
Particulars
Days
July 2022
16
August 2022
4
Total
20
From the above computation it can be observed that there is a delay of 20 days. Late filing fees under section 234E will be charged at Rs. 200 per day, thus for 20 days the late filing fees will come to Rs. 4,000.
Illustration
The quarterly statement of tax collected at source i.e. TCS return for the second quarter of the year 2022-23 is filed by Mr. Raja on 4-12-2022. Tax collected at source during the quarter amounted to Rs. 2,520. What will be the amount of late filing fees to be paid by him for delay in filing the TCS return?
**
The due date of filing the TCS return for the second quarter of the year 2022-23 i.e. July 2022 to September 2022 is 15th October, 2022. The return is filed on 4th December, 2022, thus there is a delay of 50 days as computed below:
Particulars
Days
October 2022
16
November 2022
30
December 2022
4
Total
50
From the above computation it can be observed that there is a delay of 50 days. Late filing fees under section 234E will be charged at Rs. 200 per day, thus for 50 days the late filing fees will come to Rs. 10,000. However, the late filing fees cannot exceed the amount of tax collected at source. TCS during the quarter amounts to Rs. 2,520 and hence, late filing fees shall be Rs. 2,520.
Illustration
The quarterly statement of Tax deducted at source i.e. TDS return for the last quarter of the year 2022-23 is not filed by Mr. Raj till 31st May, 2023. Can he file the TDS return of last quarter of the year 2022-23 after 31st May, 2023 without payment of any late filing fees?
**
The due date of filing the TDS return for the last quarter of the year 2022-23 i.e. January 2023 to March 2023 is 31st May, 2023. The return is not filed till 31st May, 2023 and hence late filing fees under section 234E of Rs. 200 per day of default will be levied. TDS return cannot be filed without payment of late filing fees as discussed above. In other words, the late filing fees shall be deposited before filing the TDS return. Hence, in this case, Mr. Raj cannot file the TDS return without payment of late filing fees of Rs. 200 per day.
Computation of fee under Section 234E at the time of processing of TDS/TCS statement
Section 200A of the Income-tax Act provides for processing of TDS statements for determining the amount payable or refundable to the deductor. Provisions of Section 200A has been amended by the Finance Act, 2015 so as to enable computation of fee payable under section 234E at the time of processing of TDS statements.
As the mechanism of TCS statement is similar to TDS statement, a new section 206CB has been inserted by Finance Act, 2015 to provide for processing of TCS statements on the lines of existing provisions for processing of TDS statement contained in section 200A of the Income-Tax Act. The new section 206CB also provides for mechanism for computation of fee payable under section 234E at the time of processing of TCS statement.
Penalty under section 271H
As per section 271H, where a person fails to file the statement of tax deducted/collect at source i.e. TDS/TCS return on or before the due dates prescribed in this regard, then assessing officer may direct such person to pay penalty under section 271H. Minimum penalty can be levied of Rs. 10,000 which can go upto Rs. 1,00,000. Penalty under section 271H will be in addition to late filing fees prescribed under section 234E.
Apart from delay in filing of TDS/TCS return, section 271H also covers cases of filing incorrect TDS/TCS return. Penalty under section 271H can also be levied if the deductor/collector files an incorrect TDS/TCS return. In other words, minimum penalty of Rs. 10,000 and maximum penalty of upto Rs. 1,00,000 can be levied if the deductor/collector files an incorrect TDS/TCS return.
No penalty will be levied under section 271H for the failure to file the TDS/TCS return, if the person proves that after paying tax deducted/collected by him, along with the late- filing fee and interest (if any), to the credit of the Central Government, he had filed the TDS/TCS return before the expiry of a period of one year from the due date of filing the TDS/TCS return. In other words, no penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if following conditions are satisfied:
The tax deducted/collected at source is paid to the credit of the Government.
Late filing fees and interest (if any) is paid to the credit of the Government.
The TDS/TCD return is filed before the expiry of a period of one year from the due date specified in this behalf.
It should be noted that the above relaxation is applicable only in case of penalty levied under section 271H for delay in filing the TDS/TCS return and not in case of filing incorrect TDS/TCS statement.
Apart from above relaxation, in following two cases the taxpayer can get relief from penalty under section 271H:
Under section 273A(4) the Principal Commissioner of Income-tax or Commissioner of Income-tax has power to waive or reduce the penalty levied under the Income-tax Act. Penalty can be waived or reduced by the Commissioner of Income-tax if the conditions specified in section 273A(4) in this regard are satisfied.
Apart from shelter of section 273A(4), section 273B also provides immunity from penalty in genuine cases. As per section 273B, penalty under section 271H will not be levied if the taxpayer proves that there was a reasonable cause for failure.
Illustration
The quarterly statement of tax deducted at source i.e. TDS return for the first quarter of the year 2022-23 is filed by Mr. Krunal on 4-4-2023. Tax deducted at source during the quarter amounted to Rs. 84,000. Before filing the TDS return he has paid the TDS, interest and late filing fees to the credit of the Government. Will he be liable to penalty under section 271H for delay in filing the TDS return?
Penalty under section 271H can be levied for delay in filing the TDS return. In this case, the due date of filing the TDS return for the first quarter of the year 2022-23 i.e. April 2022 to June 2022 is 31st July, 2022. The return is filed on 4th April, 2023, thus there is a delay of 247 days (i.e. less than a year). As per section 271H(3) no penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if following conditions are satisfied :
The tax deducted/collected at source is paid to the credit of the Government.
Late filing fees and interest (if any) is paid to the credit of the Government.
The TDS/TCD return is filed before the expiry of a period of one year from the due date specified in this behalf.
In the present case, all the aforesaid conditions are satisfied because the delay in filing the TDS return is of less than 1 year and interest and late filing fees are paid before filing the TDS return, thus penalty under section 271H will not be levied.
The same provision as discussed above will apply in case of delay in filing the statement of tax collected at source i.e. TCS return.
Illustration
The quarterly statement of tax deducted at source i.e. TDS return for the first quarter of the year 2022-23 is filed by Mr. Rahul on 20-8-2023. Tax deducted at source during the quarter amounted to Rs. 1,84,000. Before filing the TDS return he has paid the TDS, interest and late filing fees to the credit of the Government. Will he be liable to penalty under section 271H for delay in filing the TDS return?
** Penalty under section 271H can be levied for delay in filing the TDS return. The due date of filing the TDS return for the first quarter of the year 2022-23 i.e. April 2022 to June 2022 is 31st July, 2022. The return is filed on 20th Aug., 2023, thus there is a delay of 385 days (i.e. more than a year). As per section 271H(3) no penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if following conditions are satisfied
The tax deducted/collected at source is paid to the credit of the Government.
Late filing fees and interest (if any) is paid to the credit of the Government.
The TDS/TCD return is filed before the expiry of a period of one year from the due date specified in this behalf.
In the above case, the delay is of more than 1 year and hence the above immunity will not be available. Thus, the Assessing Officer can levy penalty under section 271H. Minimum penalty of Rs. 10,000 and maximum penalty of Rs. 1,00,000 can be levied by the Assessing Officer. However, Mr. Rahul has following two remedies to get relief from penalty:
He can apply to Principal Commissioner of Income-tax or Commissioner of Income-tax under section 273A(4) to seek relief from penalty
He can seek relief under section 273B by proving that there was a reasonable cause for failure.
The same provision as discussed above will apply in case of delay in filing the statement of tax collected at source i.e. TCS return.
Illustration
The quarterly statement of tax deducted at source i.e. TDS return for the first quarter of the year 2022-23 is filed by Mr. Sharma on 10-7-2022. The particulars of the tax deducted at source as mentioned in TDS return are incorrect. Will he be liable to pay penalty under section 271H for delay in filing the TDS return and for furnishing the inaccurate particulars in the return?
**
Penalty under section 271H can be levied for following defaults:
Delay in filing the TDS/TCS quarterly statement i.e. TDS/TCS quarterly return.
Furnishing incorrect TDS/TCS quarterly statement i.e. TDS/TCS quarterly return.
In the present case Mr. Sharma has filed an incorrect TDS return and hence he shall be held liable to pay penalty under section 271H. Minimum penalty of Rs. 10,000 and maximum penalty of up to Rs. 1,00,000 can be levied. Mr. Sharma will have no remedy under Section 271H(3) to claim relief from penalty for furnishing of inaccurate particulars in the return. However, the taxpayer can seek relief in the following way:
He can apply to Principal Commissioner of Income-tax or Commissioner of Income-tax under section 273A(4) to grant relief from penalty.
He can seek relief under section 273B by proving that there was a reasonable cause for failure.
The same provision as discussed above will apply in case of delay in filing the statement of tax collected at source i.e. TCS return.
MCQ ON LATE FILING FEES AND PENALTY FOR FAILURE TO FURNISH/DELAY IN FURNISHING THE TDS/TCS STATEMENTS
Q1.As per section , a person who fails to file the TDS/TCS return on or before the due date prescribed in this regard is liable to pay a specific amount as late filing fees.
(a) 234E (b) 271C
(c) 271H (d) 234A
Correct answer : (a) Justification of correct answer :
As per section 234E, a person who fails to file the TDS/TCS return on or before the due date prescribed in this regard is liable to pay a specific amount as late filing fees.
Thus, option (a) is the correct option.
Q2.As per section 234E, late filing fees will be levied at Rs. 200 for every day during which the failure continues. However, the amount of late filing fees shall not exceed the amount of TDS/TCS.
(a) True (b) False
Correct answer : (a) Justification of correct answer :
As per section 234E, where a person fails to file the TDS/TCS return on or before the
due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS/TCS.
Thus, the statement given in the question is true and hence, option (a) is the correct option.
