Consequences for a deductor if he fails to deduct TDS or fails to deposit it to the Government’s account

A deductor would face the following consequences if he fails to deduct TDS or after deducting the same fails to deposit it to the credit of Central Government’s account:-

a) Disallowance of expenditure

As per section 40(a)(i) of the Income-tax Act, any sum (other than salary) payable outside India or to a non-resident, which is chargeable to tax in India in the hands of the recipient, shall not be allowed to be deducted if it is paid without deduction of tax at source or if tax is deducted but is not deposited with the Central Government till the due date of filing of return.

However, if tax is deducted or deposited in subsequent year, as the case may be, the expenditure shall be allowed as deduction in that year.

Similarly, as per section 40(a)(ia), any sum payable to a resident, which is subject to deduction of tax at source, would attract 30% disallowance if it is paid without deduction of tax at source or if tax is deducted but is not deposited with the Central Government till the due date of filing of return.

However, where in respect of any such sum, tax is deducted or deposited in subsequent year, as the case may be, the expenditure so disallowed shall be allowed as deduction in that year.

b) Levy of interest

As per section 201 of the Income-tax Act, if a deductor fails to deduct tax at source or after the deducting the same fails to deposit it to the Government’s account then he shall be deemed to be an assessee-in-default and liable to pay simple interest as follows:-

(i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.

c) Levy of Penalty

Penalty of an amount equal to tax not deducted or paid could be imposed under section 271C​.

I-T department warns taxpayers against fraudulent emails

The Income Tax Department warned tax payers against phishing/fraudulent refund emails saying it does not seek details of personal information like PIN through e-mail.

“The Income Tax Department does not send e-mail requesting your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts,” the department said.

Listing out dos-and-donts, it asked tax payers not to reply or open attachments of any email they receive from someone claiming to be the authorised by Income Tax Department or directing you to an Income Tax website.

“Attachments may contain malicious code that will infect your computer,” it said in a tweet. “Do not click on any links. If you clicked on links in a suspicious e-mail or phishing website then do not enter confidential information like bank account, credit card details.”

It further asked tax payers not to cut and paste the link from the message into their browsers as phishers can make link look like real, but it actually would send them to different websites.

“Use anti-virus software, anti-spyware, and a firewall and keep them updated,” it said. “Some phishing e-mails contain software that can harm your computer or track your activities on the internet without your knowledge. Anti-virus and Anti-spyware software and firewall can protect you from inadvertently accepting such unwanted files.”

The tax department asked receivers of such emails to forward them or the website URL to phishing@incometax.Gov.In.

A copy may also be forwarded to incident@cert-in.Org.In.

Tax payers, it said, can forward the message as received or provide the Internet header of the e-mail. The Internet header has additional information that can help the department to locate the sender.

It advised them to delete the message after forwarding the e-mail or header information to the tax department.

Expedite Tax Refunds Below Rs. 50,000: CBDT

In an effort to reduce taxpayers grievances, the Central Board of Direct Taxes on Monday directed the Income Tax department to expedite issuance of pending refunds which are below Rs. 50,000.

The status of outstanding refunds was reviewed recently. Following the review, the Central Board of Direct Taxes (CBDT) has issued directions to its field formations to expedite the issue of pending refunds below Rs. 50,000 for assessment years 2013-14 and 2014-15 in all such cases which have not been selected for scrutiny.

However, only those cases which are chosen for scrutiny are not included under this drive.

A number of refunds have an amount of less than Rs. 50,000 and it has been instructed that such cases shall be issued refunds promptly and those exceeding this amount should also be issued as soon as verification has been done.

Interest, Penalty & Prosecution for Failure to Deposit Tax Deducted

If a person fails to deduct the whole or any part of the tax at source, or, after deducting, fails to pay the whole or any part of the tax to the credit of the Central Government within the prescribed time, he shall be liable to action in accordance with the provisions of section 201 and shall be deemed to be an assessee-in-default in respect of such tax and liable for penal action u/s 221 of the Act. Further Section 201(1A) provides that such person shall be liable to pay simple interest

(i) at the rate of 1% for every month or part of the month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at the rate of one and one-half percent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.

Such interest, if chargeable, is mandatory in nature and has to be paid before furnishing of quarterly statement of TDS for respective quarter.

Section 271C inter alia lays down that if any person fails to deduct whole or any part of tax at source or fails to pay the whole or part of tax under the second proviso to section 194B, he shall be liable to pay, by way of penalty, a sum equal to the amount of tax not deducted or paid by him.

Further, section 276B lays down that if a person fails to pay to the credit of the Central Government within the prescribed time, as above, the tax deducted at source by him or tax payable by him under the second proviso to Section 194B, he shall be punishable with rigorous imprisonment for a term which shall be between 3 months and 7 years, along with fine.

New facility of pre-filling TDS data while submitting online rectification

CBDT has issued a press release regarding the new facility that has been provided for pre-filling of TDS schedule while submitting online rectification request on the e-filing portal to facilitate easy correction or up-dating of TDS details.

The issued press release has been given below:

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

10th December, 2015

Press Release

Subject: New facility of pre-filling TDS data while submitting online rectification -reg.

Central Board of Direct Taxes has simplified the process of online rectification of incorrect TDS details filed in the Income Tax Return. Taxpayers were required to fill in complete details of the entire TDS schedule while applying for rectification on the e-filing portal of the Income-tax Department (www.incometaxindiaefiling.gov.in). Errors due to incomplete TDS details in rectification applications were leading to delays in processing of such applications thereby causing hardship to the taxpayers.

To avoid this inconvenience, a new facility has been provided for pre-filling of TDS schedule while submitting online rectification request on the e-filing portal to facilitate easy correction or up-dating of TDS details. This is expected to considerably ease the burden of compliance on the taxpayers seeking rectification due to TDS mismatch.

(Shefali Shah)
Pr. CIT(OSD),
Official Spokesperson, CBDT

Important information for downloading of TDS Certificates

Given below are some important information regarding downloading of TDS certificates. Refer to the following provisions of the Income Tax Act, 1961:

Downloading of TDS Certificates from TRACES made mandatory:   

In this regard, your attention is invited to the CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or http://www.tdscpc.gov.in (hereinafter called TRACES Portal).

TDS Certificates downloaded only from TRACES hold valid: 

In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.

Due Date for downloading and Penalty for non-compliance: 

Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.

Assistance for downloading TDS Certificates from TRACES: 

You can logon to TRACES portal http://www.tdscpc.gov.in and refer to TRACES e-Tutorial https://www.tdscpc.gov.in/en/download-form16a-etutorial.html to download TDS Certificates. For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

Reasons for rejection of correction statement by TDSCPC

Following are the common reasons for rejecting a correction statement:

• TAN is not valid as per data at TDSCPC
• Statement corresponding to regular token number / previous token number field, as given in correction return, does not exist
• Previous token number does not correspond to the last accepted correction statement at TDSCPC
• Correction is filed for a regular return which is in cancelled state
• In a correction statement, below are the verification keys which should match with the corresponding fields of regular statement :
  • RRR assessment year
  • Return Financial Year
  • Periodicity
  • Previous Token number
  • Last TAN of Deductor
  • Receipt number of Original / Regular Return
  • Form number

• Sum given in 27A form should match with the sum of deducted amount of deductee records given in the correction statement

TDS & TCS Amendments Effective From 01-06-2015

Given below are the several amendments relating to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) that have been proposed in Budget 2015-16.

1. Requirement for obtaining evidence/ particulars by employer for TDS–Section 192

• Currently, the person responsible for paying salary has to depend upon the evidence/ particulars furnished by the employee in respect of deductions, exemptions and set-off of loss claimed. There is neither any guidance regarding the nature of evidence/particulars to be obtained nor any uniformity in this regard. 
• With a view to rationalise the collection of information and documents by employers, a new sub-Section (2C) is proposed to be introduced in Section 192 to provide that the person responsible for paying salary to an employee will be required to obtain evidence or proof or particulars of prescribed claims including claim for set-off of loss under the provisions of the Act in the prescribed form and manner. This amendment is effective from 1st June 2015. 

2. TDS from premature withdrawal from Employees’ Provident Fund Scheme (EPFS) – Sections 192A and 197A

• When an employee participating in a Recognised Provident Fund (RPF) withdraws the accumulated balance lying to her/his credit in the said RPF account, that amount is not included in her/his total income and is considered as exempt provided certain conditions are met. The main condition is that such a person should have rendered continuous service with that employer for a period of five years or more. In case of cessation of employment, if the employee takes up an employment with another employer and the accumulated balance in her/his RPF account is transferred to her/his RPF account maintained by such other employer, then also the exemption would be available. 
• It therefore follows that if the abovementioned conditions are not satisfied, the accumulated balance due to the employee is taxable in the hands of the employee. In such a case, tax is required to be calculated by re-computing the tax liability of the years for which the contribution to RPF has been made, by treating the same as contribution to unrecognised provident fund. The trustees of an RPF are required to deduct tax at source on such accumulated balance at the time it is paid, as if such withdrawn amount were income chargeable under the head Salaries. However, often, the trustees did not have the requisite information to be in a position to compute the TDS correctly. With a view to simplify the process of deduction in such cases, Section 192A is now inserted to provide that trustees of RPFs shall, at the time of payment of the accumulated balance due to the employee, deduct tax at source at the rate of 10%, where the aggregate withdrawal is Rs. 30,000/- or more. 
• At the same time, if the concerned employee fails to furnish her/his permanent account number (PAN) to the person responsible for deducting such tax, then tax shall be deducted at the maximum marginal rate as per Section 206AA. It has also been provided that tax shall not be deducted if the employee furnishes to the payer a self-declaration in the prescribed Form No. 15G/15H, declaring that the tax on her/his estimated total income of the relevant previous year would be nil. All these amendments shall take effect from 1st June 2015.

3. TDS from interest (other than interest on securities)–Section 194A

There are several amendments pertaining to TDS from interest.

• Interest on fixed deposits with banks attracts TDS under Section 194A. Only exception to this was in respect of interest paid by co-operative banks to their members. 
• Now, Section 194A(3)(v) has been amended to expressly provide that payment of interest on time deposits by a cooperative bank to its members will not be exempt from withholding tax requirement. Therefore, with effect from 1st June 2015, when interest paid or credited in excess of the prescribed limit (which is presently Rs. 10,000/-), tax will have to be deducted at source by the cooperative bank. 
• The existing provisions that permit a depositor to furnish Form 15G/15H for non-deduction of tax at source from the interest wherever applicable, will apply to the interest on deposits with cooperative banks also. 
• The exemption from withholding tax under Section 194A(3)(viia)(b) in respect of payment of interest on time deposit taken from a cooperative society will continue to be available to a cooperative bank. Similarly, a primary agricultural society or a primary credit society or a cooperative land mortgage bank or a cooperative land development bank shall continue to enjoy the exemption under Section 194A(viia)(a), and will accordingly not be required to deduct tax at source from interest payment. 
• The definition of the term time deposits under Explanation 1 to Section 194A(3) has been amended to include recurring deposits within its scope. As a result, now for all banks, whether cooperative or commercial, interest paid on both time deposits and recurring deposits will attract the TDS provisions. 
• Many bank depositors avoided TDS from interest on bank fixed deposits by splitting their deposits amongst different branches of the same bank. This was on account of the current provision whereby the threshold limit of exemption from TDS is applicable to the interest credited or paid by every branch on an individual basis. With a view to curbing this practice, it is now proposed that TDS under Section 194A will be with reference to income credited or paid by the banks as a whole (in those cases where core banking solutions have been adopted by the concerned bank). 
• Interest paid on compensation amount awarded by the Motor Accident Claim Tribunal has been brought under the ambit of TDS. If the aggregate amount of such a payment during the financial year exceeds Rs. 50,000/-, there will be a TDS at the time of payment of the interest. Consequently, it follows that there would be no requirement to deduct tax at source at the time of credit of interest. All the above amendments are effective from 1st June 2015. 

4. TDS from payments to transporters–Section 194C

• Currently, payment to transporters carrying on the business of plying, hiring, or, leasing of goods carriages is not liable to withholding tax if the transporter furnishes her/his permanent account number to the payer. It seems that the intention of having this provision was to exclude small transporters from the rigours of TDS provisions. But because of the way the section was drafted, all transporters were excluded from the TDS provisions if they had a PAN. 
• With a view to bring back the big transporters back into the TDS fold, from 1st June 2015 onwards, this exemption will be available only to those transporters who own ten or less goods carriages at any time during the previous year. Such a transporter would also need to furnish a declaration to that effect to the payer along with the PAN. 
• There was also some bit of confusion in the minds of a few people as to whether the said section (and exclusion) applied to payers engaged in the business of transport or to payees engaged in the business of transport. To remove this confusion, it has now been clarified in the Memorandum to the Finance Bill that this exemption is available whether such amount is paid by a person engaged in the business of transport or otherwise. 

5. Obtaining/quoting tax deduction and collection account number (TAN) relaxed for certain notified persons–Section 203A

• At present, any person who is required to deduct tax at source (other than under Section 194IA) is expected to obtain a TAN and quote that TAN in the challan and the TDS statement that he is supposed to file. This is a cumbersome requirement–particularly to the individuals who acquire an immovable property from non-residents. In such cases, for one time transactions also, the TAN related formalities have to be complied with. In order to provide relief to such individuals or Hindu undivided families (HUFs) who are not liable for audit under Section 44AB or for one time transactions such as single transaction of acquisition of immovable property from non-residents on which tax is deductible under Section 195, it is proposed to amend Section 203A to the effect that the requirement of obtaining and quoting of TAN shall not apply to such notified persons. This amendment is effective from 1st June, 2015.

6. Processing of TCS returns–Section 206CB

• A new Section 206CB is proposed to be introduced to facilitate the processing of TCS (tax collected at source) statements on the same lines as TDS statements. 
• Section 206CB(1) permits adjustments to the sums collectible to take care of arithmetical errors or incorrect claims apparent from any information in the TCS statement filed. 
• Interest if any, payable on the sum collectible and fee payable under Section 234E are now chargeable in respect of the TCS. For this purpose, suitable provisions have been introduced in the Sections 200A and 206CB. 
• The intimation has to be sent before the expiry of one year from the end of the financial year in which the statement is filed.
• Section 206C(7) provides for payment of interest if the person responsible for collecting the tax does not collect the tax or after collecting does not pay it as required under that Section. At the same time, since an intimation generated under Section 206CB is deemed to be a notice of demand under Section 156, interest under Section 220(2) would be payable if the tax collector fails to pay such demand within thirty days of the service of the notice of demand. This could give rise to a situation where interest is charged under both Sections, 220(2) as well as 206C(7). To avoid this, a new sub-Section (2C) is proposed to be inserted in the Section 220 to provide that where interest is charged for any period under Section 206C(7), no interest shall be charged under Section 220(2) of the Act on the same amount for the same period. These amendments are effective from 1st June 2015.

7. Self-declaration for non-deduction of tax from life insurance payments–Sections 194DA and 197A

• Section 194DA provides for deduction of tax at source at the rate of 2% from payments made under a life insurance policy, if such amount is chargeable to tax and the amount is not less than Rs. 1,00,000/-However, there is no facility for such an assessee to file a self-declaration under Section 197A to receive the amount without deduction of tax at source even if she/ he has no tax liability. 
• It is now proposed to amend Section 197A provided that tax shall not be deducted under Section 194DA if the recipient of the payment on which tax is deductible furnishes to the payer a self-declaration in the prescribed Form No. 15G/15H declaring that the tax on his estimated total income for the relevant previous year would be nil. This amendment is effective from 1st June 2015. 

8. Interest on certain bonds and Government securities earned by FIIs–Section 194LD

• Presently, interest paid to a foreign institutional investor, qualified foreign investor and foreign portfolio investor on rupee denominated bonds of an Indian company or a Government security is taxed at a concessional rate of 5% plus applicable surcharge and cess. This concession was available for interest payable on or after 1st June 2013 but before 1st July 2015. 
• The concessional rate of tax is proposed to be extended up to 30th June 2017. 

9. Furnishing of information made more stringent and penalty introduced – Sections 195 and 271-I

• Presently, when any person responsible for making a payment to a non-resident of any interest or other sum chargeable under the provisions of this Act, such person is required to deduct tax from such payment under Section 195(1). Further, sub-Section (6) of Section 195 requires such person to furnish the information relating to payment of any sum in Form 15CA. In most cases, a view was taken that this provision applied only to payments which gave rise to income chargeable to tax in India. Consequently, payments that did not give rise to income chargeable to tax in India were not reported in the Form 15CA.
• Now, sub-Section (6) is proposed to be amended to provide for furnishing of information whether or not such remittances are chargeable to tax. This would cast a heavy burden on persons who make payments to non residents–especially in case of import of goods. Even for such payments, now, the obligation to furnish Form 15CA (and also Form 15CB) will have to be complied with. 
• This burden has been further compounded by the proposal to introduce a new Section 271-I to levy a penalty of Rs. 1,00,000/- if the person required to furnish information under Section 195 fails to furnish such information or furnishes inaccurate information. This amendment is effective from 1st June 2015. 

Interest on Late Payment of TDS

In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.

Earlier, the Interest liable to be paid was 1% but this has been increased to 1.5% pm with a view to discourage the practice of delaying the deposit of tax after deduction.

Interest @ 1.5% is liable to be paid from the date on which the TDS was deducted and not from the date the TDS was due. 

For example: TDS was deducted on 25th June and the due date for TDS Payment was 7th July. The assessee fails to deposit the TDS by 7th July. In such a case, the Interest would be calculated from 25th June and not from 7th June.

The interest is to be calculated as per illustrations below: 

Case 1:

Tax Deducted on 26th June, TDS deposited on 9th July (due date was 7th July)

The period of 26th June to 30th June will be calculated as one month (being part of a month) & from 1st July to 9th July will also be treated as one month. As such in this case, the interest payable is for two months. Total interest would be 3%. Sounds odd, but it is true –  for a delay of 2 days, one has to pay interest for two months. 

Case 2:

Tax Deducted on 20th March, TDS deposited on 5th May  (due date was 30th April)

The period of 20th March to 31st March will be calculated as one month, 1st April to 30th April will be another month & from 1st May to 5th May will be treated as another one month. As such in this case, the interest payable is for three months. Total interest would be 4.5%. For a 5 day delay, the interest payable is for 3 months. 

Logic behind this calculation is that, if dues are not paid on time, the interest for each month (or part thereof) is to be paid right from the date of deduction till date of deposit of the TDS. Each month is treated based on the ‘Calendar Month’ instead of counting the number of days.

Important Due Dates for the month of August 2015

7 August 2015 – Due date for deposit of Tax deducted/collected for the month of July, 2015

15 August 2015 – Quarterly TDS certificate (in respect of tax deducted for payments other than salary) by a person being an office of the Government for the quarter ending June 30, 2015

22 August 2015 – Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of July, 2015

31 August 2015 – Annual information return under section 285BA for the financial year 2014-15

31 August 2015 – Due date for filing returns of income-tax and wealth tax for the assessment year 2015-16 for all assessees other than – (a) Company; or (b) A person other than company whose books of account are required to be audited; or (c) A working partner of a firm whose accounts are required to be audited; or (d) Assessee who is required to furnish a report under section 92E.

13 ERRORS YOU SHOULD AVOID TO GET CORRECT TDS-TAX CREDIT IN INCOME TAX RETURN

Reasons for mistakes in Credit for tax payments or TDS 

A major reason for difference in refund amount during processing is that the details of tax payment or TDS do not match with the data available with the Department. The critical checkpoints are as under:

1. Tax deduction details from All employers/TAN holder shall be shown separately  :Corresponding deduction of tax (TDS) on salary by all Employers should be correctly entered in Schedule TDS1 in ITR1 or Schedule TDS 1 for ITR 2.Please note that details of all Employer /deductor should be shown separately .In some organisation location wise/branch wise /station wise /DDO wise TAN is taken ,in such case if you have received salary from two TAN holder then you should enter TAN wise tax deduction.
2. Salary TDS and Interest etc TDS should be entered in Sch TDS-1 and TDS-2 Separately :TDS on salary should be entered in Schedule TDS1 ONLY and TDS on other Income should be entered in Schedule TDS 2 ONLY. 
3. Enter Correct TAN of the Deductor :Tax deduction Account Number (TAN) of the Employer/Deductor is the unique identifier for matching TDS claims made against TDS reported by Employer/Deductor. The TAN number is mentioned on the Form 16 given by the Employer or on the Form 16A given by the Deductor. In case the TAN of the Employer/Deductor is not correctly mentioned, no matching is possible and TDS credit will not be given. 
4. Check and Match your Form 16/16A details with Form 26AS :If the TAN has been correctly entered but the Employer/Deductor does not report the same TDS details to the Department, especially the taxpayer Permanent Account Number (PAN), then also the TDS cannot be matched. Therefore it is advised to check Form 26AS for the amount which has already been deposited by persons deducting tax on behalf of the taxpayer. Thereafter, the taxpayer should bring this fact in the notice of persons deducting tax so that they can act accordingly. 
5. Deposit Self assessment Tax at correct PAN:In case of Tax payments of Advance tax or Self-Assessment tax, the PAN used to submit the tax challan to the bank should be the same as the PAN used to submit the return. Without a valid PAN the tax payment received from the bank would be in suspense and cannot be matched with tax payment claim as entered in the return. 
6. Deposit Tax for correct assessment year :While making the tax payment at the Bank, NO MISTAKE should be made in the challan while entering the PAN, Name, Major head (20 or 21), Assessment Year, Type of tax payment {advance tax (code 100), Self-Assessment tax (code 300)}, tax applicable (Income tax other than companies). 
7. Do not select code 400:Any tax payment made under code 400 corresponding to 'Tax on regular Assessment' cannot be used for matching and accordingly credit cannot be given against advance tax or self-assessment tax claims. 
8. File correct Challan Identification Number (CIN) :The Challan Identification Number (CIN) is the combination of BSR code (any bank branch's unique 7 digit identification number issued by RBI), date of deposit of challan (DD-MM-YY), and the running serial number of the challan, asis mentioned by the Bank while accepting tax payment on its seal. In case this is not clearly legible, the Bank can be requested to provide correct details. This must be entered correctly in the return while claiming credit.

Schedule TDS and TCS 

A major reason for difference in refund amount during processing is that the details of tax payment or TDS do not match with the data available with the Department. The critical check points are as under: 

1. Tax deduction Account Number (TAN) of the Employer/Deductor is the unique number for matching TDS claims as reported by the Employer/Deductor. The TAN is mentioned on the Form 16 given by the Employer or on the Form 16A given by the Deductor. In case the TAN details do not match TDS credit will not be allowed. 
2. Where the TAN entered is valid but the Employer/Deductor does not report the exact TDS details to the Department, especially the taxpayer Permanent Account Number (PAN), and then TDS cannot be matched. Therefore it is advised to check Form 26AS for the amount which has been deposited by persons deducting tax on behalf of the taxpayer. If any mismatch exists, the taxpayer should bring it to the notice of persons deducting tax so that they can act accordingly. 
3. TDS on salary should be claimed ONLY in schedule TDS Salary (ITR 1) or TDS1 (ITR 2-4). 
4. TDS on income other than salary should be claimed ONLY in TDS on income other than salary (ITR 1) or TDS 2(ITR 2-4). 
5. Claiming of TCS claims in TDS schedules and vice versa will lead to mismatching, which results in excess demand or lower refund. The claim of TDS amount should be made in “TDS deducted” as well as “TDS Claimed for the year” columns in schedules TDS2 and TCS. 
6. TDS claims should match with Form 26AS.

TDS Obligations Due Dates [F.Y.2015-16] [A.Y.2016-17]

Every person who are responsible to deduct TDS or Collecting TCS shall furnish a quarterly statement/return and deposit TDS for the period ending on 30th June, 30th September, 31st December and 31st March of each financial year. This TDS Calendar due dates chart  (F.Y. 2015-16) or (A.Y.2016-17) will help you to file your TDS return and payment in time.

15th May, 2015 – Quarterly Statement

• Form 24Q – TDS on salaries/perquisites
• Form 26Q – TDS on other payments
• Form 27Q – TDS on intereset paid to NRI
• Form 27EQ – TCS Statement

30th May, 2015 – TDS certificates

• Form 16 A (TDS on payment other than salaries)
• at the QTR ending 31st March 2015

31st May, 2015 – Issue of TDS Certificates form 16 (for salary payment during 2014-15)

15th July, 2015 – Quarterly Statement

• Form 24Q – TDS on salaries/perquisites
• Form 26Q – TDS on other payments
• Form 27Q – TDS on intereset paid to NRI
• Form 27EQ – TCS Statement

30th July, 2015 – TDS certificates – Form 16 A (TDS on payment other than salaries) at the QTR ending 30th June, 2016

15th Oct, 2016 – Quarterly Statement

• Form 24Q – TDS on salaries/perquisites
• Form 26Q – TDS on other payments
• Form 27Q – TDS on interest paid to NRI
• Form 27EQ – TCS Statement

30th Oct, 2016 – TDS certifcates

• Form 16 A (TDS on payment other than salaries)
• at the QTR ending 30th Sept, 2015

15th Jan, 2016 – Quarterly Statement

• Form 24Q – TDS on salaries/perquisites
• Form 26Q – TDS on other payments
• Form 27Q – TDS on intereset paid to NRI
• Form 27EQ – TCS Statement

30th Jan, 2016 – TDS certificates – Form 16 A (TDS on payment other than salaries) at the QTR ending 31st Dec, 2015.

The time-limits for deposit of TDS within seven days from the end of the month in which the deduction is made. If the payment is made or credit to the payee’s account in the month of march then on or before 30th April.

In case of payment on behalf of the Government, TDS shall be deposited on the same day if not accompanied by a challan or within seven days from the end of the month in which the deduction is made.