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Late Filing Fees And Penalty For Failure To Furnish/Delay In Furnishing The TCS Statements

  1. Duties of the Person liable to Deduct/Collect Tax at Source

  2. Last Date to File TCS Returns for FY 2019-20 

  3. 'Late Filing Fees' for Failure To Furnish/Delay In Furnishing The TCS Statements

  4. 'Penalty' for Failure To Furnish/Delay In Furnishing The TCS Statements under Section 221 [Section 206C(6A)]:

  5. 'Payment of interest' for Failure To Furnish/Delay In Furnishing The TCS Statements [Section 206C(7)]:

Before understanding the penalty provisions for failure to furnish the statement of Tax Deducted at Source or statement of Tax Collected as Source (i.e. commonly known as TDS/TCS return) we shall first have a look at the few basic duties of a person liable to deduct/collect tax at source and due dates for filing of TDS/TCS return.

 

 

1. Duties of the Person liable to Deduct/Collect Tax at Source

 

He shall obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be) and quote the same in all the documents pertaining to TDS/TCS.

 

He shall deduct/collect the tax at source at the applicable rate.

 

He shall pay the tax deducted/collected by him to the credit of the Government.

 

He shall file the periodic TDS/TCS statements, i.e., TDS/TCS return.

 

He shall issue the TDS/TCS certificate in respect of tax deducted/collected by him.

2. Last Date to File TCS Returns for FY 2019-20 

Months Quarter Ending Last Date To File Returns
April, May, June June 30 July 15
July, August, September September 30 October 15
October, November, December December 31 January 15
January, February, March March 31 May 15

In case there are delays in depositing TDS, or errors while filing TDS returns, the following penalties shall become applicable:

  • Late filing fees
  • Penalty
  • Interest

3. 'Late Filing Fees' for Failure To Furnish/Delay In Furnishing The TCS Statements

Failure to file your returns within the due date will mean that you will be subject to a late filing fee of Rs.200 per day. The fee will be charged for every day after the due date, until the date on which your return is filed. However, the maximum fees that you will have to pay will be limited to the TDS amount.

For instance,

in case your TDS payable amount is Rs.7,500 on May 14, and the amount is paid on November 19, the total number of days between the aforementioned dates is 190. Therefore, Rs.200 per day for 190 days will be Rs.38,000. However, since your TDS payable amount is Rs.7,500, your late filing fees will be only Rs.7,500 and not Rs.38,000. But, an interest will be charged to you.

4. 'Penalty' for Failure To Furnish/Delay In Furnishing The TCS Statements under Section 221 [Section 206C(6A)]:

If any person responsible for collecting tax in accordance with the provisions of this section does not collect the whole or any part of the tax or after collecting, fails to pay the tax as required by or under this Act, he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax.

Provided that any person, other than a person referred to in section 206C(1D) [(ID) omitted w.e.f. 1.4.2017], responsible for collecting tax in accordance with the provisions of this section, who fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee shall not be deemed to be an assessee in default in respect of such tax if such buyer or licensee or lessee—

  1. has furnished his return of income under section 139;

  2. has taken into account such amount for computing income in such return of income; and

  3. has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed.

Further, no penalty shall be charged under section 221 from such person unless the Assessing Officer is satisfied that the person has without good and sufficient reasons failed to collect and pay the tax.

5. 'Payment of interest' for Failure To Furnish/Delay In Furnishing The TCS Statements [Section 206C(7)]:

If the person responsible for collecting tax does not collect or after collecting fails to pay the tax as required under this section, besides the tax, he shall be liable to pay simple interest @ 1% on the amount of such tax from the date on which such tax was collectable to the date on which the tax was actually paid and such interest shall be paid before furnishing the statement for each quarter in accordance with the provisions of section 206C(3).

Further, where the person responsible for collection of tax is not deemed to be assessee in default as per proviso to section 206C(6A) the interest shall be payable from the date on which such tax was collectible to the date of furnishing of return of income by such buyer or licensee or lessee.

CONTENT- Tax Collection at Source (TCS) [Section 206C]

Related Topics .... Tax Collected at Source (TCS)

 
 




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