Penalty for Non-filing of TDS returns

TDS stands for Tax Deducted at Source, and it was designed to collect tax directly from the source of revenue. TDS/TCS returns that are not filed or are filed late might lead to several other problems. Non-filing of TDS returns or statements can result in two penalties, according to the taxes rules.

Every assessor who is required to deduct TDS must file a TDS return. These forms must be filed at specific periods of time, and information such as the TAN (Tax Deduction & Collection Account Number), amount deducted, TDS payment, Permanent Account Number (PAN), kind of payment, and so on must be reported to income tax authorities.

There are late filing charges for late filing of TDS returns, therefore knowing the correct due dates is critical; otherwise, a TDS penalty will be imposed. The IRS may issue a notice if there is any omission or misstatement of information. We’ve developed a list of every late penalty for not filing an ITR that applies to various sections. Continue reading to find out whether one applies to you and how to get this payment cleared.

Responsibilities of the person who is responsible for deducting/collecting tax at source

• He must get a Tax Deduction Account Number (or a Tax Collection Account Number, as the case may be) and include it in all TDS/TCS-related papers.
• He is required to deduct/collect tax at the applicable rate at the point of origin.
• He must deposit the tax he has deducted/collected to the credit of the government.
• He is responsible for filing TDS/TCS statements, also known as TDS/TCS returns, on a regular basis.
• He will issue a TDS/TCS certificate for the tax he has deducted/collected.

TDS Return Filing Due dates

According to government notifications, the following are the due dates for filing TCS/TDS returns in different quarters of a financial year:

Due date to file TDS return

Interest

Interest on late payment of TDS or late deduction of TDS is defined under Section 201(1) of the Income Tax Act of 1996 as follows:

Interest on TDS deducted late: From the due deduction date to the actual deduction date, the assesse is required to pay interest at 1% per month or part of a month on the amount of TDS. Interest on late TDS payments: From the due deduction date until the actual deduction date, the assesse is required to pay interest at the rate of 1.5 percent per month or part of a month on the amount of TDS.

What are the penalties for not filing an ITR by section?

Here we have discussed the various sorts of penalties that may be imposed depending on the circumstances of late ITR filing.

• Section 234F- applicable when the nature of the offence is filing an ITR after the deadline has passed. The penalty levied if the ITR is filed before the 31st December of the Assessment Year, the penalty is Rs.5000; if the ITR is filed after the 31st December but before the 31st March of the Assessment Year, the penalty is Rs.10,000.
• Section 234A- Applicable when a person who fails to file an ITR by the deadline and owes unpaid taxes. Penalty levied since the specified due date, interest has been compounding at 1% per month on the outstanding tax amount.
• Section 271H- Applicable when failed to submit TDS and TCS returns by the deadline. Penalty levied for the late filing penalty under Section 234E, which is Rs.200 each day until the TDS/TCS is paid, the penalty ranges from Rs.10,000 to Rs.1,00,000.
• Section 270A- Applicable when a person with taxable income fails to file his ITR or is discovered to have under-reported his income on his returns, he will be penalized. Penalty levied 50% of the total tax due on the income for which no return has been filed.

Different types of taxpayers and the penalties they face

1. Individuals with a salary: Three types of people are considered here.
2. Below Rs.2.5 lakhs in total annual income: There is no penalty (No ITR penalty for nil return)
3. Below Rs.5 lakhs in total annual income: The maximum penalty is limited to Rs.1,000.
4. Over Rs.5 lakhs in total annual income: a maximum of Rs.10,000
5. Up to Rs. 10,000 for businesses
6. Individuals that work for themselves: Up to 10,000 rupees
7. Elderly people: The penalty for failing to file an ITR under Section 234F applies solely to older individuals who meet the following criteria.
8. Between the ages of 60 and 80, with an annual income of more than Rs.3 lakhs.
9. Over the age of 80, with a total annual income of over Rs.5 lakhs.

Many people now have gross annual salaries that do not surpass the taxation threshold. If you are one of them, you might be wondering how a penalty for late ITR filing might affect you. We have the answer for that as well.

Failure to file TDS returns by the due date will result in late filing fees and, if the late filing fees are not paid, the person will be obliged to pay the TDS penalty. Every day after a due date, until the day on the TDS return is filed, a fee will be assessed. The maximum penalty that must be paid, however, must not exceed the TDS liability. Phoenixtax- Tax consultants can assist you with the filing of Income Tax return in Tambaram, Chennai.