As the payer of the income (you, your bank, your employer or any other person or institution), it is mandatory to deduct taxes if the income exceeds the specified limit under the income tax law. Once the taxes are deducted and deposited to the government, the deductor is required to file TDS return as well.
Usually, if the income earned by you exceeds a specified limit, then tax is deducted by the payer of the income. Once the tax is deducted, then the payer of income is required to deposit the same against your PAN to the government. The payer of the tax, i.e., you or the bank or your employer, is also required to file a TDS return of the tax deducted and deposited.
First, the payer of the income is required to deduct tax at the time of making the payment. Then he/she is required to deposit the tax deducted against the PAN of the receiver of the income to the government. Once the tax is deposited, then he/she is required to file a TDS return for the same.
Similar to the income tax return filing deadline, there is a deadline to file a TDS return as well. It is important to note that missing the TDS return filing due date has monetary consequences.
Due dates of depositing TDS deducted
Yashesh Ashar, Partner, Bhuta Shah & Co LLP – a chartered accountant firm says, “As per section 200 of the Income-tax Act, 1961, the deductor of the tax is required to deposit the TDS to the government with the specified time limit. Under the current income tax rules, the deductor of the tax is required to deposit the tax with the government by the 7th of the succeeding month. However, taxes deducted in the month of March, the due date is different for the government and other deductors. For the government, the due date to deposit tax deducted is April 7. For other deductors, the tax must be deposited by 30th of April.”
|Deductor||Due date of depositing tax deducted|
|Government, other deductors (From April, 2022 to February, 2023)||7th of the succeeding month|
|Government, other deductors (For March 2023)||Government – April 7, 2023 and other deductors such as banks, employer – April 30, 2023|
Suppose your employer has deducted tax on the salary paid on June 30. Then your employer is required to deposit the tax deducted to the government by July 7.
If the tax deducted is not deposited to the government, then he/she will have to face the penal consequences.
Due date for filing TDS return
The taxes deducted on the income is deposited on a monthly basis. The TDS return for the same is filed on a quarterly basis. Thus, for the taxes deducted in the months of April, May and June, the TDS return is required to be filed in July. I Do note that for the month of March, there is an exception for the TDS return filing deadline. The TDS return for the last quarter of the financial year must be filed by May.
|Quarter||Due date for filing TDS return|
|Quarter 1 (April, May June 2022)||July 31, 2022|
|Quarter 2 (July, August, September 2022)||October 31, 2022|
|Quarter 3 (October, November, December 2022)||January 31, 2023|
|Quarter 4 (January, February, March 2023)||May 31, 2023|
Exceptions to the above rule
It is important to note that the above due date for depositing taxes and filing TDS returns is not the same for every source of income.
Ashar says, “As per Income-tax Act if the tax is deducted under section 194-IA (TDs on purchase of immovable property), 194-IB (TDS on the property having monthly rental of Rs 50,000 and above), 194-M (TDS on payment made to resident contractors and professionals), 194S (TDS on transfer of virtual digital assets, crypto, NFTs etc.), then the deductor is required to file challan-cum-statement within 30 days from the end of the month in which deduction is made.”
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