What is the penalty for late payment of TDS?

Penalty (Sec 271H) The Assessing Officer may direct a person who fails to file the statement of TDS within the due date to pay a minimum penalty of Rs. 10,000 which may be extended to Rs. 1,00,000. The penalty under this section is in addition to the late filing fee u/s 234E.

How is TDS penalty calculated?

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).

Is TDS payment date extended for March 2021?

(v) Extension of date for filing declaration under the Direct Tax Vivad se Vishwas Act, 2020 [enacted for resolution of pending disputes related to the Act] was extended to 31 March 2021. Further, the due date of payment without any additional amount has been extended to 30th August 2021.

How is interest on late payment of TDS calculated?

Interest on Late Deduction = 12300 * 2 months * 1/100 = 246. Under Section 201(1A), you will have to pay interest of 1.5\% per month or part of the month, from the Date of Deduction(of TDS) to the Date of Payment. This interest applies to “Non-payment of tax after deduction, either in whole or in part”.

Is TDS payment due date for May 2021 extended?

CBDT extend dates for filing TDS, tax returns The last date for filing belated tax returns for the financial year 2021 has been extended till 31 May 2021. The date for payment of amount under Direct Tax Vivad se Vishwas Act 2020 without any additional amount has also been extended till 30th June 2021.

Is TDS payment due date for April 2021 extended?

April, 2021. The due date for filing of challan-cum-statement has been extended from April 30, 2021 to May 31, 2021 vide Circular 08/2021, dated 30-04-2021. The due date for filing of challan-cum-statement has been extended from April 30, 2021 to May 31, 2021 vide Circular 08/2021, dated 30-04-2021.

Is interest paid on late payment of TDS allowed as deduction?

Explanation: Interest on late payment of TDS is not covered under Section 30-36 of the Act and thus qualifies for consideration u/s 37. Therefore, interest expenses with regard to late payment of taxes, which are compensatory in nature, are eligible for deduction u/s 37 of the Act.

How do you close short TDS payment default and consequences?

Through Conso file Request on TRACES: If there is a “Short Payment defaults” on account of unmatched challans for the relevant quarter, the deductor would be provided with online view of all available unconsumed challans, which can be tagged with deductees, to close the above default.

What is due date of TDS payment?

Generally, the due date for TDS payment is always the 7th day of the next month, with a few exceptions. For example, if an organization wants to pay TDS for the month of July, then the TDS payment due date for the same will be the 7th of August.

What is the due date for April 2021 TDS payment?

Due Date for Filing TDS Returns FY 2020-2021

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.