This challan is used for depositing TDS and TCS by corporate as well as non-corporate entities. TDS or Tax Deducted at Source is a mechanism introduced by the Government in which the person (deductor) before making the payment of specified nature (such as salary, rent, etc.) to the payee (deductee) shall deduct tax at specified percentage from such amount payable and deposit it to the Income Tax Department. TCS or Tax Collected at Source is the tax collected by the seller from the buyer at the time of sale of specified goods.
Due date for filing TDS Challan
TDS is to be paid by all assessees who have deducted TDS at the time of incurring expenditure. The due date for payment of TDS is different for government assessee and non-government assesses.
Due date for payment in case of non-government assessee:
- Tax is to be deposited for months other than March – 7th of the next month. For example, if the TDS is to be deposited for the month of August 2016, the due date shall be September 7, 2016.
- Tax is to be deposited for the month of March – 30th April. For example, if the TDS is to be deposited for the month of March 2017, the due date shall be April 30, 2017.
Due date for payment in case of government assessee:
- Tax Deposited without challan – Same day
- Tax deposited with challan – 7th of the next month. For example, if the TDS is to be deposited for the month of May 2017, the due date shall be June 7, 2017
Unlike for non-government assesses, in case of government assesses, for the month of March also, the payment is to be made by 7th of the next month. Hence in case the TDS is to be deposited for the month of March 2017, the due date shall be April 7, 2017.
Consequences in case of delay
In case where TDS is deducted on time but not deposited within the specified time period (i.e. 7th of the next month or 30th April in case of March) interest on such amount is payable at the rate of 1.5% per month from the date on which it should have been paid.
For example, If the TDS for the month of October 2016 is deposited on December 15, 2016, then in such case the due date of payment was November 7, 2016 however since the payment is not made in time interest at the rate of 3% will be payable, i.e. for two months, November as well as December.