New Revise TDS / TCS return filing due date & Payment due date for 2020 as per the Taxation and Other Regulations (Relaxation of Some Provisions) Order, 2020.
The deadlines for specific GST and Income Tax legislation have been expanded by the Minister of Finance. Pandemic COVID-19 has forced a lockout in India. There are many challenges for business and professionals during this period, including different compliances under tax legislation.
Various reliefs are provided with respect to the submission of the TDS / TCS declaration and the issue of the certificate in the “Taxation and Other Laws (Relaxation of Other Provisions) Order 2020” for the quarter ended 31.03.2020.
Complete Coverage of Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020
calendar year 2020 has begun with many challenges, with the revised due dates for various TDS related return filings and tax payments following.
Attributable Due Date for TDS E-filing Returns for Fy 2019-20.
|Quarter||Quarter Period||Last Date of Filing|
|1st Quarter||1st April to 30th June||31st July 2019|
|2nd Quarter||1st July to 30th September||31st Oct 2019|
|3rd Quarter||1st October to 31st December||31st Jan 2020|
|4rd Quarter||1st January to 31st March||30th June 2020 Read Rescript 2020|
Changes in interest rate for delay in the deposit of TDS / TCS in time as provided for in the Taxes and Other Laws (Relaxation of Other Provisions) Legislation, 2020.
TDS / TCS Changes to Covid19 by Ministry of Finance
- “Government to infuse Rs 50,000 crores of liquidity by reducing the rate of TDS, the rate of non-salaried specified payments made to residents, and the rate of Source Tax Collection for specified receipts by 25% of the current rate”
- “Among other steps, the due date of all income tax returns for the fiscal year 2019-20 will be extended from 31 July 2020 and 31 October 2020 to 30 November 2020 and the tax audit from 30 September 2020 to 31 October 2020”
- “The period of the Vivad se Vishwas scheme for making payment without an additional amount will be extended to 31 December 2020”
- Advanced tax, self-assessment tax, standard tax, TDS, TCS, equalization fee, STT, CTT late payments made between 20 March 2020 and 30 June 2020, the lower interest rate at 9% instead of 12%/18 percent per year (i.e. 0.75 percent per month instead of 1/1.5 percent a month) will apply. There is no late fee / penalty available.
- The government extended the scope of the lower or nil TCS, TDS credential until 30 June 2020 due to a coronavirus pandemic.
Arrival Due date for TDS & TCS Payment Deposit for Government & Non-Government Companies
- The due date for the submission of the TCS deposit is the 7th of the next month.
TDS Deposit Due Date as follows:
- For non-governmental entities-7th of the next month (with the exception of March where the due date is scheduled for April 30th)
- Government departments
- If you pay via Challan-7th of next month
- If paid via book-entry, the same day on which the TDS is deducted.
Interest in late payment and late deduction of TDS
As per section 201(1A) Interest at the rate of 1 % per month or part of the month on the amount of TDS deductible from the date of tax until the date of tax actually deducted shall be charged for the late deduction.
Also, interest for late payment at a rate of 1.5 percent per month or part of the month on the amount of the payment.
Interest in late payment of TDS: amendments made pursuant to Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24th March 2020:
For late payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20 March 2020 and 30 June 2020, the interest rate will be reduced by 9 percent instead of 12 per cent/18 percent per year (i.e. 0.75 percent per month instead of 1/1.5 percent per month). No late fee/penalty shall be paid for any delay in respect of that time.
Interest in late payment of TCS or failure to collect TCS:
In the event that the collector responsible for collecting the tax at source does not raise it or refuses to pay it to the Government, he shall be liable to pay basic interest at a rate of 1% a month or part thereof on the balance of that tax from the date on which the tax was collected to the date on which the tax was actually charged and that interest shall be paid until furnish.
You will have to pay a fine equal to the amount deducted/collected under the provisions of the Income Tax Act.
Prosecution (Sec 276B)
As per the prosecution (Sec 276B), if a person refuses to pay the payment to the Central Government, the TDS deducted by him under the provisions of Chapter XVII-B shall be entitled to obtain a strict penalty of at least three months, which may be expanded to seven years. The fine depends on the conditions or inquiry conducted by the appointed tax authority/assessment officer.
Penalty (Section 234E)
The deductee of the TDS shall be liable to pay a fine of INR 200/-per day before the full sum of the TDS is paid. However, the penalty shall not exceed the actual amount of the TDS.
Late Filing Fees :
For the delayed fee of TDS after deduction under Section 201(1A), you have to pay interest at a rate of 1.5 percent per month from the date of the deduction to the actual date of the deposit. It should also be remembered that interest is measured on a monthly basis rather than on a number of days. Half of a month will also be regarded as a whole month.
What is important to remember here is that
The estimation of interest on the balance of the TDS owed starts on the day from which the TDS was withheld rather than the day from which it was due.
PENALTIES (Section 271H)
Pursuant to this rule, the Assessing Officer may direct a person who has not filed a TDS payment on time with a minimum of INR 10,000, which may even be extended to INR 1,000,000.
If the following conditions are met, no penalty will be levied (under section 271H) for late payment of TDS / TCS returns:
- The tax deducted at source must be paid to the credit of the government.
- No penalty will be levied if interest and late filing fees are paid to the Government’s credit.
- Before the one-year period expires, the TDS / TCS return has been filed from the due date.
TDS for the purchase of immovable property
For the purchase of immovable property on which TDS applies, the return, together with the payment of TDS, must be made before the 30th of the following month. For example, TDS for property purchased in May must be deposited by 30 June.