The due date for depositing Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) for FY 2024-25 is approaching.
Taxpayers must ensure they deposit it by March 7, 2025, to avoid penalties. Here’s what you need to know about TDS, TCS, and who is required to file them.
What are TDS and TCS?
Tax Deducted at Source (TDS) ensures a steady flow of revenue to the government. It is mandatory to deduct tax on certain payments at specified rates and deposit it with the government.
Tax Collected at Source (TCS) applies to businesses that sell specific goods like liquor, scrap, and forest products.
The seller collects the tax from the buyer at the time of sale and deposits it with the government.
How to Deposit TDS/TCS?
Corporate taxpayers and individuals subject to a tax audit under Section 44AB of the Income Tax Act must deposit TDS/TCS electronically.
Payments can be made using Challan ITNS 281.
TDS/TCS Deposit Deadline
The deadline depends on the type of deductor/collector and the payment method. Failure to deposit TDS/TCS by March 7, 2025, may lead to interest charges, penalties, or legal action.
Consequences of Not Depositing TDS/TCS
If tax is deducted or collected but not deposited, the individual or business will be treated as a defaulter. The consequences include:
Interest Charges – Late payment attracts additional interest.
Penalty – A penalty equal to the tax amount may be imposed.
Legal Action – Non-compliance may lead to prosecution under Section 276B of the Income Tax Act.
How to File TDS/TCS Online?
TDS/TCS can be filed online through the official portal: Income Tax e-portal. Ensure timely payment to avoid penalties.
