TDS RATE CHART for the FY 2024-25

Tax Deducted at Source (TDS) RATE CHART for the FY 2024-25

Q.: How can the TDS be deposited?

A corporate assessee and other business assessees are required to pay taxes (including TDS) via internet or debit cards electronically. The deductor must fill in the Challan No. ITNS 281 to deposit the tax.

Other deductors may deposit the tax so deducted in any branch of the Reserve Bank of India, the State Bank of India, or any authorised bank.

Q.: When is the deadline for submitting TDS?

Taxes deducted during the month must be deposited on or before the due date the following dates.

Type of Deductor	Mode of payment of TDS	Due Date for deposit of TDS
Office of Government	Without Income-tax Challan	On the same day on which tax is deducted
	With Income-tax Challan ITNS 281	Within 7 days from the end of the month in which tax is deducted
Other Deductor	With Income-tax Challan ITNS 281	·   For April-February Month: Within 7 days from the end of the month in which tax is deducted ·   For March Month: On or before April 30

Q.: What are the ramifications of failing to deduct or pay TDS?

If any person who is responsible for deducting tax at source fails to deduct the whole or any part of the tax or fails to deposit the same to the credit of the Central government after deduction, he is considered to be an assessee-in-default.

If the deductor does not deduct tax at source, the deductor is liable for paying an amount of tax he failed to deduct at an interest rate of 1% for each month or part thereof. In the event that the tax deducted is not deposited at the origin, however, the applicant will be liable to pay interest of 1,5% on or part of the tax that he did not deposit with the central government loan for each month.

Apart from this in accordance with Article 40(a)(ia) of the law, the taxable income of the buyer will not be paid for at least 30 percent of the purchasing value that was responsible for TDS.

Q.: If the buyer pays tax due on the income reported in the return of income, is the seller considered as the assessee in default?

According to Section 201 of the Income-tax Act, a deductor who fails to deduct tax at source is not considered in default if the payee has taken such amount into account when computing income in the return and has paid the tax due on such disclosed income. A certificate is to be obtained in Form No. 26A and submitted electronically by the deductor from the chartered accountable.

Thus, the buyer is not considered an assessee-in-default if the seller has taken the purchase amount into account when calculating his income and has paid the tax due on the income declared in the return.

Q.: What is the deadline for submitting a TDS return?

The tax deducted at source statement required by this provision must be filed with the Income-tax Department on or before the following due date:

Quarter	Due Date
April- June	31st July of the Financial Year
July- September	31st October of the Financial Year
October- December	31st January of the Financial Year
January- March	31st May of the financial year immediately following the financial year in which deduction is made

If you fail to file your TDS return on time, you will be charged a late filing fee under Section 234E. The price for failing to provide the TDS/TCS Statement would be charged at the rate of Rs. 200 per day that the failure continues. The amount of the fee, however, must not exceed the total amount deductible or collectible, as applicable. The cost must be paid before the late TDS/TCS Statement may be submitted.

A person who fails to file the TDS return or fails to file it by the required date is subject to a penalty under Section 271H. If you provide inaccurate information on your TDS return, you will face a penalty under Section 271H. The minimum penalty for failing to file a TDS return or providing inaccurate information is Rs. 10,000, with a maximum penalty of Rs. 100,000.

Q.: What are the ramifications of being an assessee in default under the Income Tax Act of 1961?

The following are the consequences of being an assessee in default:

• Interest levied under Section 220.

Simple interest at the rate of one percent per month is payable on any amount not paid within the time period specified in the notice under Section 156.

Furthermore, this interest can only be levied until the Purchaser of the Goods files the ROI. However, if all three of the following requirements are met, the Principle Chief Commissioner / Chief Commissioner / Principle Commissioner/Commissioner might lower the interest:

• Payment of such sum has/would cause actual hardship to the assessee.
• The assessee’s default was caused by circumstances beyond his or her control.
• Assessee has cooperated in the assessment/recovery procedures investigation.

• Section 221 imposes a penalty.

The Assessing Officer may order the payment of a penalty, which can be any sum up to the amount owed in tax arrears. If the AO is satisfied that the default was for good and sufficient reasons, he or she may refuse to direct the penalty.

• Sections 222, 227, 229, and 232 govern recovery proceedings.

Apart from penalties, recovery proceedings must be initiated against the assessee/person responsible under the Act’s sections 222 (Certificate to Tax Recovery Officer), 227 (Recovery through State Government), 229 (Recovery of penalties, fines, interest, and other sums), or 232 (Recovery by suit or under other law not affected).

• Proceedings for Prosecution.

Depending on the nature and severity of the default, the repercussions may include prosecution under Chapter XXII of the Income Tax Act of 1961 sections 276BB and 276C. If a person fails to pay the tax collected to the credit of the Central Government, he shall be punished by rigorous imprisonment for a time of not less than three months but not more than seven years, as well as a fine (Section 276BB).

Reduction in TDS rates w.e.f October 1, 2024

TDS Rate chart for FY 2024-25

TCS Rate Chart for FY 2024-25

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