Guidelines

What is the penalty for non filing of TDS return?

What is the penalty for non filing of TDS return?

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.

Is it mandatory to file TDS return?

TDS return filing is compulsory for all the assessees who fall under the tax slab as prescribed by the Income Tax Department. It is compulsory to e-file the TDS returns and it can be done through the official Income Tax e-filing portal. It is mandatory that the TDS returns are submitted on time by the deductors.

How is TDS penalty calculated?

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For example, say the payable TDS amount is Rs 5000 and the date of the deduction is 13th January. TDS payment date for that deduction is on 17th May. Then the interest payable is Rs 5000 x 1.5\% p.m. x 5 months = Rs 375 (from the month of January to the month of May).

What happens if tenant does not deduct TDS?

What is the penalty for not deducting TDS on rent? If the TDS is not deducted, penalty interest @ 1\% shall be applicable per month, till the TDS is deducted.

How can I pay TDS penalty Online?

Following is the procedure that a deductor needs to follow:

  1. Login TIN NSDL Portal. To pay TDS online visit the website of income tax department.
  2. Select the Relevant Challan.
  3. Fill in the Challan Details.
  4. Confirm Challan Details.
  5. Make TDS Payment.
  6. Online Verification.

Is TDS late fees disallowed under income tax?

Late filing fees under section 234E 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.

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Is nil return for TDS to be filed?

Return, which comprises of Only Zero/NIL Deductions in deduction details and no challan details (Apart from a NIL Challan Indication) is called NIL Return. Note that the NIL return should have a value Greater than Zero as Total Amount Paid/Credited. Zero-Amount of Payment is not accepted by NSDL.

Who has to pay TDS on rent?

All individuals or HUFs (except those liable to audit under clause a and b of section 44AB) paying monthly rent to a resident in excess of ₹ 50,000 are liable to deduct TDS under section 194-IB.

How can I pay TDS on rent over 50000?

In order to bring the high rental income group within the ambit of tax, the government in the Budget 2017 inserted a new Section – 194IB. Under this Section, individuals and HUFs who pay rent of Rs 50,000 or above will have to deduct TDS at the rate of 5\%. This section is effective from 01.06. 2017.

What is the penalty for not filing TDs return?

Thus, both the above section relates to person who are liable to deduct TDS and other than this there is no general penalty in relation to TDS. Therefore, no penalty can be charged if you don’t file Nil TDS return and it’s just a service to government and not a compulsion.

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What are the consequences of non deduction and late deposit of TDs?

Non deduction, late deduction and late deposit of TDS may lead you to face following consequences: 1 Interest on late deduction /deposit of Tax at source. 2 Dis-allowance of Expenses, on which tax has not been deducted /deposited u/s 40 (a) (ia) 3 Penalty and prosecution. (271C and 276B)

What are the late filing fees under section 234e of TDs?

The return is not filed till 31st May, 2022 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.

What happens if I don’t file nil TDs return?

Therefore, no penalty can be charged if you don’t file Nil TDS return and it’s just a service to government and not a compulsion. This article is just for information purpose it is always advisable to hire a professional for practical execution.

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