As per the provisions of the Indian Income-tax law, Tax Deducted at Source (TDS) on payments/credits made during the month of March, needs to be deposited latest by 30th April.
On account of the above-stated ordinance, tax-payers heaved a sigh of relief and felt that they need not undertake any TDS compliance as of now. However, it may be noted that there is no extension in due date for deposit of TDS and the due date for deposit of TDS for the month of March 2020 still stands on 30th April 2020.
TDS provisions provided by the ordinance
It is advisable that the taxpayers should deposit the TDS on or before the due dates to avoid any repercussions. In a case, where on account of lock-down, the taxpayer is facing any sort of difficulty in computing the TDS liability, one may deposit TDS on an estimated basis so that interest on late payment is applicable only on the shortfall if any.
- Delay in depositing TDS for the month of March will invite a reduced interest of 0.75% per month instead of the existing rate of 1.5% per month.
- No penalty shall be levied on account of the above delay.
- No prosecution shall be sanctioned on account of the above delay
- The due date for filing TDS returns has been extended from 31st May 2020 to 30th June 2020.
