Income Tax dept tells TDS deductors not to violate deadline, threatens to slap Rs 200 p.d. penalty
TDS deductors have been cautioned today to adhere to the stipulated deadline of May 31 to file their statements. Income Tax Department (ITD) threatened to slap a penalty of Rs 200 on them for each day of default if they failed to meet the deadline. The Central Board of Direct Taxes (CBDT), which frames policy for the I-T department, issued an advertisement in this context
TDS deductors have been cautioned today to adhere to the stipulated deadline of May 31 to file their statements. Income Tax Department (ITD) threatened to slap a penalty of Rs 200 on them for each day of default if they failed to meet the deadline. The Central Board of Direct Taxes (CBDT), which frames policy for the I-T department, issued an advertisement in this context. The advertisement reads, "Attention tax deductors. The last date to file Tax Deducted at Source (TDS) statement for the January-March quarter is May 31, cautioning For delay in filing TDS statement, you pay a fine of Rs 200 for each day of default."
"The deductors who have deducted the tax and have not deposited the same by the due date must do so "immediately" and that all deductors must register themselves at the official website of the I-TD meant for this job--https://www.Tdscpc.Gov.In," the ad said. The deductors have also been advised to correctly quote their TAN (tax deduction account number) and also the permanent account number (PAN) of the deductees so that they get their "due tax credit," while adding "Non quoting of PAN or TAN in TDS statement may lead to levy of penalty."
If there is no transaction liable to TDS/TCS (tax collected at source) to report for the quarter, do intimate the same at TRACES portal (the website mentioned above) using 'declaration for non filing' functionality, to avoid notice for non-filing of TDS statement.
What is Tax Deducted at Source (TDS)?
The TDS is deducted by the deductor (employer) from the salary of the employee, to file it every quarter or in three months time with the tax department, according to income tax rules. Under TDS norm, the tax is deducted at the origin of the income. A certain amount from a payment is cut by the payer and is remitted to the government by the payer on behalf of the payee.
The TDS provisions are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc.
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