TDS Filing- Penalties or Fees Charged On Delay In Filling

After the deduction of tax, the deductor must deposit that tax and should file a TDS return. But if the deductor misses or fails to deposit the TDS on time, a penalty will be charged. Let's learn what are the penalties on failure of filing TDS return?

What is TDS?

TDS ( TAX DEDUCTED FROM SOURCE ), when a person (deductor) who is required to make a specified payment to another person (deductee) must deduct tax at source and remit it to the Central Government. The deductor whose income tax has been deducted at source is entitled to credit for the amount deducted on the basis of the deductor's Form 26AS for TDS certificate.

Penalty on failure of depositing the tax

There are penalties if the deductor fails to deposit the tax deposited or fails to provide the TDS return on time.The interest rate of 1.5% per month calculated from the date of deduction to the date of deposit is charger is the deductor does not deposit the deducted tax and if the deductor fails to deduct the tax penalty interest is charged of 1% per month from the date tax is deductible to the date tax is actually deducted.

Penalty on failure of filing a TDS return

Section 234E states that if a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, he must pay a fee of Rs. 200 per day until the failure continues. The amount of late fees is not to exceed than the amount of TDS
TDS/TCS returns cannot be filed unless late filing fees are paid.
In other words, the late filing fees must be paid before the TDS return is filed. It should be noted that the Rs. 200 per day penalty is not a penalty, but rather a late filing fee.
According to section 271H, if a person fails to file TDS/TCS return or files an incorrect return, the assessing officer may order that person to pay a penalty from minimum of Rs 10000 to Maximum of Rs 100000.