TDS/TCS Deadline for FY 2024-25: File by March 7 to Avoid Penalties

The deadline for submitting Tax Deducted or Collected at Source (TDS/TCS) for FY 2024-25 is approaching. To avoid penalties, individuals or entities who are required to pay tax must submit it on or before March 7, 2025.

What is TDS and TCS?

TDS (Tax Deducted at Source) is a system where income payers, like employers or businesses, deduct tax from specific payments (like salaries, interest, or contracts) before paying the amount to the recipient. The deducted tax is then deposited to the Central Government’s account.

TCS (Tax Collected at Source) applies to businesses that deal in specific goods like alcoholic liquor, scrap, and forest products. In these cases, sellers collect tax from buyers at the time of the transaction and deposit it to the government.

TDS/TCS Deposit Procedure

To deposit TDS/TCS, corporate taxpayers, or those subject to tax audits under section 44AB, must do so electronically using Challan No. ITNS 281.

TDS/TCS Deposit Due Dates

The due dates for TDS/TCS deposit depend on the type of deductor or collector and the payment method. Here are the due dates:

For Government Offices:

Without Income-tax Challan: Tax must be deposited on the same day it is deducted or collected.

With Income-tax Challan ITNS 281: Tax must be deposited within 7 days from the end of the month in which it was deducted or collected.

For Other Deductors:

Monthly – With Income-tax Challan ITNS 281:

For April to February months: Deposit within 7 days from the end of the month in which the tax is deducted.

For March month: Deposit on or before April 30.

Quarterly – With Income-tax Challan ITNS 281 (If permitted by the Assessing Officer):

Quarter 1: Deposit on or before July 7.

Quarter 2: Deposit on or before October 7.

Quarter 3: Deposit on or before January 7.

Quarter 4: Deposit on or before April 30.

For Other Collectors:

With Income-tax Challan ITNS 281: Tax must be deposited within 7 days from the end of the month in which tax was collected.

Consequences of Failure to Deposit TDS/TCS

If a person or entity fails to deduct/collect or deposit TDS/TCS, they are considered an "assessee in default." This could lead to penalties, interest charges, and even prosecution under section 276B for failing to deposit the tax after it has been deducted.

Make sure to follow the due dates and file on time to avoid any penalties or legal issues.