Tax Filing
The governing body for controlling direct taxes, the Central Board of Direct Taxes (CBDT) has issued an order extending the last date for TDS deposits from October 7 to October 10, 2014. According to an official press release, the date has been extended considering the consecutive holidays owing to the festive season and weekend during the first week in the month of October, 2014.
Each company or organization deducting tax at source for their employees is liable to file quarterly statements for the same with CBDT. The four quarters include quarters ending on 30th June, 30th September, 31st December and 31st March for every financial year. The last date for filling of TDS deposits for the quarter ending 30th September is fixed at 7th October. According to the CBDT circular, the extension is only provided on deposit of tax deducted at source/tax collected at source during the quarter ending September. The date for filing of TDS/TCS statements for the second quarter of the 2014-15 fiscal shall continue to remain unchanged.
An Overview of TDS:
TDS or tax deducted at source is a tax structure which allows for regular payment of taxes in advance, similar to any pay-tax-as-one-earns scheme. Up to 10% of the income earning out of salary, rent, commission or interest on any dividends etc is deducted as TDS from the payment made and this to be deposited with the department of revenue by employer/the person who deducts. TDS is governed by Central Board for Direct Taxes (CBDT) under the Indian Income Tax Act of 1961.
The person or company deducting the tax is known as the Deductor while the person or individual from whom the tax is being deducted is known as a Deductee. Depending on the source of earnings, the rate of interest for TDS ranges from 1 percent of sale proceeds to 30 percent.
TDS is also deductable on the interest income paid by banks for fixed deposits exceeding Rs.10000 in one financial year. In case of a salaried individual, the employer or Deductor issues a TDS certificate at the end of the financial year which must be produced while filing income tax returns. Any tax credit if available to the individual will be repaid by the Income tax Department after personal income tax assessment.
Impact of Date Extension for Dedcutor:
As a result of the extension of the last date of filling TDS deposits fromOctober 7 to October 10, 2014, organizations or persons deducting TDS can now file their TDS deposits for three days more than the official deadline of 7th October for the quarter ending on 30th September without penalty. So in case you haven’t filed your TDS deposits till now due to the long weekend and bank holidays, the income tax department offers a three day extension to avoid any penalty of late filling of TDS deposits.
The income tax department charges a late payment fee or penalty charged at 1.5% for every month during which TDS is not deposited. It is imperative to know that the interest is charged from the date the TDS was deducted by the employer or organization and not from the due date of TDS filling.
Filling of TDS Deposit:
TDS can be deposited using electronic filling using the appropriate TDS form available with the income tax department for each quarter ending on 30th June, 3oth September, 31st December and 31st March. Electronic filling of TDS or e-filling is mandatory for all corporate and government deductors.