DUE DATE FOR E-FILING OF TDS AND TCS RETURN FOR FY 2020-2021

DUE DATE FOR E-FILING OF TDS AND TCS RETURN FOR FY 2020-2021

TDS is the tax which is collected by a person at the time of making the payment to another person.


Due Date for E-filing of TDS return 

TCS is the tax which the seller is liable to collect from the buyer on the sale of specified goods as per the Act. TDS/TCS return is filed quarterly. In this article we will discuss regarding the TDS and TCS, their payment due date and e-filing due date for AY2021-22 (FY 2020-21)
 

Tax Deducted at Source (TDS)

TDS means Tax Deducted at Source. Its main aim is to collect tax at the source from where an income is generated. The concept of TDS had been introduced to minimize tax evasion. This is done by taxing the income either partially or fully at the time when the individual’s income is generated. 

According to the Income Tax Act, any person or any company is required to deduct tax at the time of making the payment, if the amount paid exceeds the threshold limit. The Company or the person, who is deducting the tax at the time of making the payment is known as deductor or Payer.

The deductor or the payer is responsible to deposit the tax deducted at source into the account of the Central Government. The person from whose income the tax gets deducted at source is known as Deductee or payee. The deductee or the payee will be entitled to claim the amount so deducted on the basis of the TDS Certificate (Form 26AS) as issued by the deductor.

The Income Tax Act has prescribed different TDS rates for different payments which are applicable to different categories of recipients.
 

On the following types of payment, TDS is deducted:
  1. Salaries
  2. Interest payments by banks
  3. Commission payments
  4. Rent payments
  5. Professional fees
  6. Consultancy fees
  7. Lottery amount etc.
     


Tax Collected at Source (TCS)

TCS stands for Tax collected at source. The TCS is the tax that a seller collects from the buyer at the time of sale. The sellers have to submit that tax to the Central Government account.

Tax Collected at Source means the seller while selling the specified goods as mentioned in the Act will collect tax from the buyer, and will submit the same to the government's account.  As per section 206C of the Income Tax Act, some of the specified goods on which the tax will be collected is given below:

  1. Tendu Leaves
  2. Scrap
  3. Minerals like lignite, coal and iron ore
  4. Timber wood by any other mode than forest leased
  5. Liquor of alcoholic nature made for consumption by humans etc.


The goods that are specified in Section 206C of the Income-tax Act, if used to manufacture, process, or to produce anything, then tax is not payable. The tax is only payable when the specified goods are used for trading purposes.

As per the Act, only some specific person or entity is entitled as sellers for collecting the tax at source. Apart from the below-specified list, no other seller of goods can collect the tax at source and the list is:

  1. Central Government
  2. State Government
  3. Local Authority
  4. Statutory Corporation or Authority
  5. Company registered under the Companies Act
  6. Partnership firms
  7. Co-operative Society
  8. Any person or HUF who is subjected to an audit of accounts under Income tax act for a particular financial year.
     

Likewise, as per the Act, there are only a few buyers who are liable to pay the tax at source to the sellers and they are:

  1. Public sector companies
  2. Central Government
  3. State Government
  4. Embassy of High commission
  5. Consulate and other Trade Representation of a Foreign Nation
  6. Clubs such as sports clubs and social clubs
     

Due date for TDS and TCS Payment

1.  TDS Payment due date: The deductor has to deposit the amount of tax deducted at source on or before the 7th of next month. The amount has to deposited in Challan 281.

2.  TCS Payment due date:  The seller has to deposits the amount of tax collected at source in Challan 281  on or before the 7th of the next month.
 

Due Date for E-filing of TDS/TCS return for A.Y. 2021-2022 (F.Y 2020-2021)

A deductor is liable to deposit the amount which is deducted as TDS to the government and the details regarding the same have to be filed in the TDS return form. Tax Deducted at Source or TDS return is required to be filed quarterly.

There are different types of TDS deductions, which are required to be filed by using the different TDS return forms.
 

Period Quarter Due Date
1 April 2020 – 30 June 2020 Q-1 31st July 2020
1 July 2020 – 30 September 2020 Q-2 31st October 2020
1 October 2020 – 31 December 2020 Q-3 31st January 2020
1 January 2020 – 31 March 2021 Q-4 31st May 2021

Due Date for E-filing of  TCS return 

The person who collects the tax has to file a return on a quarterly basis to the government as per the prescribed form. That person only will issue a certificate of collection of tax (TCS) to the buyer in Form 27D.
 

Period Quarter Due Date
1 April 2020 – 30 June 2020 Q-1 15th July 2020
1 July 2020 – 30 September 2020 Q-2 15th October 2020
1 October 2020 – 31 December 2020 Q-3 15th January 2020
1 January 2020 – 31 March 2021 Q-4 15th May 2021

Penalty 

A.  Tax Deducted at source

According to section 201(1A), the person has to pay interest at the rate of 1% per month or part of the month on the TDS amount. The interest will be calculated from that day when the tax was supposed to be deducted till that day it was actually deducted. 

In case the person fails to pay the TDS payment on the due date, then he will be liable to pay interest at the rate of 1.5 % per month or part of the month. The interest will be calculated from that day when tax payment was supposed to be paid till that day it was actually paid. 

If the person fails to file the TDS return, then the late fine fees are payable at Rs. 200 per day for each day till the time the failure continues. It is to be noted that the penalty amount cannot exceed than the amount of TDS
 

B.  Tax Collected at Source
  1. If the person fails to furnish the TCS certificate then they attract a penalty of Rs.100/- for every day of failure. 
  2. In case the person files the TCS return after the due date, then they become liable for Late Filing Fee which is  Rs.200/- for every day of failure.
     
Edited by Minu Mishra

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