Penalty for Late & Non Filing of TDS Returns [Latest Amendments]

Every deductor (Who deduct TDS on behalf of a payee) has the duty to deposit TDS within the prescribed limit to the account of Income Tax department as per rules by Income Tax Act. Section 200 of Income Tax Act relates to depositing in many ways.

Sponsored Links

Where a persons fails to deduct or pay tax, he shall be liable to pay penalties as per income tax act.

In this article, we will discuss time limit to deposit TDS and penalty on failure or late payment to deposit TDS.

Check Time Limit to Deduct TDS and Deposit TDS 

Interest on Late Payment or Non Deduction of TDS

  • When fails to deduct TDS – 1% p.m. from the date tax was deductible to the date on which such tax is deducted.
  • When fails to deposit TDS – 1.5% p.m. from the date on which such tax is deducted to the date on which such tax is actually

According to Income Tax Act, Interest is not a penalty so it cannot be waived off. The payment must be paid for the failure or late deposit of TDS.

Penalty or Fee for Late filing of TDS Returns

Where a persons fails to submit TDS returns with the time (Check due dates to file TDS Return here), he shall be liable to pay a sum of Rs. 200 for every day during which the failure continues. (u/s 234E)

However, the amount of fee or penalty shall not exceeds the amount of tax deductible.

For Example: If penalty/fee is Rs. 3000 but TDS is Rs. 2000 then you have to pay Rs.2000.

Penalty or Fee for Non-Filing of TDS Return

If a person fails to submit TDS return or submit incorrect returns, he shall to pay Rs. 10,000 which may extend up to Rs.1,00,000. (u/s 271H)

However, the above penalty u/s 271H will not be levied in the following cases.

  • If the person proves that he paid TDS along with interest and fees.
  • If the person proves that he submit TDS return before the expiry of a period of one year form the time for delivering such TDS return.

Sponsored Links


    • Deduct tax immediately and deposit with interest @ 1% for the months of delay in deduction (i.e. from the date of payment to the person to the date of deduction). Also deposit the TDS immediately, otherwise you have also needs to pay interest on late deposit of TDS. Accordingly revise your tds return also.

  1. there’s system failure due to which i am unable to pay tds via e-payment.
    Will the late payment still be in interest column?

    • Its better to ask these kind of questions to your CA. He is better equipped to answer these questions after understanding all facts of your case. Asking these questions on net, in my humble opinion, may be detrimental to you.

      CA. Deepak Bholusaria

  2. Tds we have deducted every month but we have to pay the every month 7th.But for the month of March what shall be the due date I will be 7 th April or 30th April

  3. Suppose i have deducted the TDS and deposited the same on time, but under different section. Like i have to deposit 10% but i deposited 2% and also filled the ITR after that a case arise. Is it a non payment / delay of payment/ or what?

  4. Hi
    I have received letters from Income Tax department (TDS) regarding interest on late payment & late filing for Q1 (Rs1370/-) and Q2 (Rs450/-) as on 6/08/2015 & 29/10/2015 respectively.
    But I have not yet paid both the amount. Now I want to make online payment. So, what would be the nature of payment in Challan 281?
    N.B: I have deducted TDS on a/c 94C (Payment contractor & sub contractor).

    Kindly help.

    Motiulla, Kolkata

  5. Sir, A Pvt. Ltd. Co raised a jobwork Bill for Rs. 106378 on dt. 08.09.2015. But we are failed to deduct TDS & Retun. Now Suggest how to filed Return with Late Interest

  6. Monthly TDS payment date is 7th of every month and if there is government holiday on 7th and we make payment on 8th of that month then is there any requirement to pay interest on TDS ?

  7. I bought a property in 2014 and have not paid the TDS with the installments paid until now. Can i still pay the TDS ? What would be the consequences of paying the TDS now ?.

    Can someone help.

    • Can you tell what is the value of property as per registered amount. If you have paid over 50 lakh then you need to deduct TDS. If it is over 50 lakh then you have to calculate TDS now and paid without any delay. As it attracts penalty of Rs. 1 lakh on failure.

      Now you need to do the follow steps:
      Deduct TDS on instalments you have paid @1% and deposit it without any delay with interest of 1.5% on TDS amount.

      Please ask further if you have any query. Thanks