Now, you all know who is responsible to deduct TDS and on which payment they are liable to deduct TDS in our previous articles. But now it is the primary duty of the deducter to deposit TDS to the government account on behalf of deductee/payee. So deductees can claim it on their income tax returns.
Time to Deduct TDS
It should be done at the time of credit to the payee’s account or payment thereof, whichever is earlier.
Tax is to be deducted at source at the time of credit to the payee’s account or on accrual of the payment at the end of the accounting year or at the time of payment in cash or by cheque or draft or any other mode, whichever is earlier.
TDS should be deposited into the Govt. account within the prescribed time along with Challan No.281 or e-payment of TDS through NSDL website.
E-payment of TDS is mandatory for those who are required to get their accounts audited u/s 44AB and all companies. The E-payment can be made by internet banking, debit card or credit card. See how to pay income tax online ?
When to Deposit TDS/Time-Limits to Deposit TDS
If the payment is made or credited to the payee’s account in the month of March
- On or before 30th April
In any other cases
- Within seven days from the end of the month in which the deduction is made
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.
The assessing officer may allow any person to deposit TDS quarterly as given below:
TDS on salaries, or interest other than interest on securities, or insurance commission, or commission or brokerage
- – 7th July, 7th October, 7th January, 30th April
When to Issue TDS Certificate/Time-Limit for Issue of TDS Certificate
Quarter Ending 30th June
- Due date for issue of TDS Certificate is 30th July
Quarter Ending 30th September
- Due date for issue of TDS Certificate is 30th October
Quarter Ending 30st December
- Due date for issue of TDS Certificate is 30th January