What is Tax Deducted at Source (TDS)?
Tax Deducted at Source (TDS) is a system introduced by the Income Tax Department where taxes are deducted directly at the source of income. Any employer or individual making specified payments (like salary, rent, professional fees, commissions, or interest) must deduct TDS and deposit it to the Central Government.
Quarterly TDS Filing Deadlines
| Quarter | Reporting Period | Filing Due Date |
|---|---|---|
| Q1 | April to June | 31st July |
| Q2 | July to September | 31st October |
| Q3 | October to December | 31st January |
| Q4 | January to March | 31st May |
Key TDS Return Forms
- Form 24Q: Quarterly statement of TDS on Salaries paid to employees.
- Form 26Q: Quarterly statement of TDS on payments other than salaries (e.g., contractor payments, professional fees, rent).
- Form 27Q: Quarterly statement of TDS on payments made to non-residents.
Consequences of Non-Compliance
Failure to deduct or deposit TDS attracts a penalty of 1% to 1.5% interest per month on the unpaid balance. Late filing of returns incurs a penalty of Rs. 200 per day under Section 234E.